The technical backdrop of the risk markets is positive. I have not heard a bullish news bite for months keeping the PUBLIC out, at least until now. The correction in February / March has made any of the baby bulls feel that the “trend has weakened.” That decline in EWT terms was countertrend; hence the larger trend is up. In fact we see that low as the end of a wave 2 leading to a 3rd wave high rate of change advance directly ahead.
My MarketMap2011™ called for the first week of April to be lower and for a bottom near April 4th – 7th. That bottom is coming into place now. The Change of trend is already from down to sidewinder for a day or two. %C, the market condition indictor, calls for a change from trending to trading range. MarketMap 2011™ calls for higher prices for the remainder of April with the next minor peak expected May 15, 2011.
Jack F. Cahn, CMT