About two weeks ago due to oversold conditions I anticipated a short term rally to start soon with a warning that a weak few days of rally could result in one more strong sell-off before a better constructive short term rally to finally materialize. Well, instead of one, there were two rounds of sell-off (with the scare of debt problems in Europe last week.)
In technical jargon...what occurred is new price lows but not confirmed by momentum new lows (my indicators went from oversold, barely move toward neutral, and then went back to oversold but not lower than when my first alert occurred.) The result, this should be the better constructive short term rally I'm looking at. How much of a rally I'm unsure but expecting the major indexes...Dow/SP500/Nasdaq will attempt to recover half of the correction from their January highs. But the medium term outlook remains for move downside and half of the move down may had already been done.
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