from Stock Market Crash Index alert 13/5

  1. 5,447 Posts.

    We are near an exit on the proxy trader index bear fund signal, which means
    that this could be the bottom.

    Friday saw a continuation of the selloff that started on Thursday
    bringing most Indices down to support areas. Investors are getting
    burned out with the fits and starts of the market and these are just
    the kind of conditions that will surprise and leave them behind.
    Go to the Commentary pages and look at the DOW hourly chart from Friday.

    Recall on Thursday night the importance of the Bullish Flag
    formation. We have come off a double bottom and created the first two
    legs of this very bullish formation. The test now is to see if we
    can turn the Index around in the next couple of days and form that
    all-important higher-low, followed by a break of last weeks high. If
    we can get that accomplished, there is nothing to hold this index
    back from reaching 10,250-300 on the next leg before the next
    programmed retracement.

    More important than all of this analysis I believe is the action of
    the CoT report this we that show improvement in all of the commercial
    positions as of las Tuesday close, which was the lowest level of this
    market since last September. The Commercials have started a stealth
    buying spree, seemingly indicating their belief that the bottom is
    near at hand.

    The NASDAQs still remain the weak sisters, and will retain their
    volatility and be the last ones to spell a real recovery, but their
    interest by the Commercials is indeed gratifying to see.

    We have put profit stops on the Bear proxytrades this weekend and if
    they are hit on a closing basis will put a notice up on this page.
    These are not reversal points, but areas where it is no longer
    prudent to hold the Bear Funds and time to lock in profits. Check the
    ProxyTrader report

    NYSE new lows came in at 50 Friday..a little high, but quite normal
    for conditions.

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