Reply #107: For those seeking a sign from the stars

[fedsron2us]

the financial astrologer, Raymond Merriman, had the following to say in his Market Week report on the 11 April 2005

As we look at the trading behavior of the U.S. stock market last week, we note that the Dow Jones Industrial Average dropped to its lowest point of the New Year last Monday, April 4. It fell to 10,330, a level not seen since the first week of November, when the U.S. presidential election took place. That low was not accompanied by a new low in either the S&P or the NASDAQ futures indices, both of which bottomed Tuesday, March 29, a week earlier. This pattern is known as an “Intermarket Bullish Divergence,” where one index makes a new cycle low and other related indices do not, and is usually followed by a tradable rally. And since Monday, April, 4, the U.S. stock indices indeed rallied into the end of the week, which is the center of the “critical reversal zone.” The high occurred late Thursday and early Friday, before selling off into the close of the week.

The U.S. stock market is thus at a very important juncture. Since a notable low did occur within the allowable “orb” for a reversal on Monday, April 4, and it was accompanied by an Intermarket bullish divergence signal, it is possible that it could represent a primary cycle trough. It would be 3 trading days before the midpoint of the cluster, which is April 7-8. If that is the case, then the U.S. stock market is in the very early stages of a new primary cycle that will probably see prices test or exceed their highs of March 7, which was the highest price in over three years. That new high would likely be realized before the end of summer, and probably even before the end of June.

But it is also possible that the critical reversal date could coincide with the end of this rally that started on April 4. After all, Thursday-Friday was right in the middle of the critical reversal zone, which continues to be in effect through next Wednesday. If the critical reversal zone coincides with the end of this rally on Thursday-Friday, then the U.S. stock market could be in a whole lot of trouble for a very long time. If prices reverse downward from here and take out the lows of last week, it keeps open the possibility that the highs seen on March 7 will not be seen again for the remainder of this decade.

<snip>

So where does that leave us for this coming week? If the market continues higher beyond this coming week (above 10,560 in the DJIA), the bull market is still intact. If the market tops out right now, and commences a decline below 10,330 in the DJIA that extends beyond this coming week, then it is likely a new bear market is in force.

http://www.stariq.com/MarketWeek.HTM

Now I may just be a superstitious old fish wife but it seems to me that April 4 low was taken out today. If Merriman is right then it is time to sell and head for the hills.