Stock market indicators update......

[gopbuster]

Overhead resistance sits between
9889 (61.8 fib) -
10,100-10,200 (lower t-line set up from 02-03 lows)-
10,200 (first upper downtrend t-line set)

Those are the numbers where selling will most likely come back in. If it can't bust through these areas on a close over the next couple of days, then I would expect to head back down to test the 8707 area (200 monthly ema) first area or just above to look for support.

Bottom line: expect volatility within this trading range over the short term. Traders market and these are the areas they look at.

8707 - 9889 for now

[Junkdrawer]

1. It was like they had a 4-hour "Going Out of Business" sale Friday...

I bought 1 stock Friday. I was going to buy a good deal more in the next week or so, but the market came back too fast.

Damn.

[gopbuster]

2. You did good...but remember what I showed you yesterday....

The risk still lies in retracing back down to that long term trendline set that goes back to 1932-1982 over the longer haul (5000-6000). If we are going into deep recession chances are we will.

Chances are we will also retest the low of the 8700-9000 area short term as well.

Dividends are good :)

[Junkdrawer]

3. There's a Joker in the deck...

The Baby Boomers entered their peak earning years at the same time bank and T-Bill interest rates were low. And on top of that, Greenspan cut FED rates to 2% and 3% levels.

This forced a lot of people into the stock market who would normally not be in the stock market. The result was stock prices above normal P/E ratios and increased volatility.

Until Boomers retire, stocks will tend to levels above historical predictors.

[gopbuster]

4. That is an interesting fundamental and could help to mitigate....

But if the overall economy continues to slow down and deteriorate, a slow grind to the bottom will be very painful and it can happen slowly over the longer term as individual companies experience less consumer demand.

Hopefully we are in better shape then what we are hearing at this point in time.