4 MAY 2010, Tuesday

• Short term (days to weeks)...Broken pivot lows...definite sideways.  Will have to wait and see how bounces act.
• Intermediate term (weeks to possibly months) still positive above 50 (red) and 90 (green) moving averages but sideways.  The mid point between those lines often provides a reasonable guide for long term...above positive...below negative.
• Long term (months) someone might use the 200 MA (black dotted line).  
• As indicated in prior posts, risk levels have been getting worse over the past weeks.  Sentiment has been very high and the NYSI is high and has been rolling over.  That and conditions in Europe may be providing the reason for recent corrective action.  
• Are we dropping to test the 1150 break out highs?  Perhaps.  The 90MA is there and also a yellow uptrend line.  If that holds, then maybe we get another rally to new highs.
• Waiting and watching...as indicated in mid April, I've been in defensive posture.