Back in early March, I called the possibility of a short term snap-back bear market rally. The rally led mostly by Financials lasted about 6 weeks (longer than I expected). I think it is time for some profit taking. I expect the market to start the correction process sometime this week. While I don’t think the major indices will retest the March lows again (agree with Doug Kass on this), I think the market will zig-zag from here (780-830 on S&P??) until the 2nd quarter earnings (mid summer) and then followed by another major rally in mid to late summer.

I like this chart posted by Michael Ashbaugh on Marketwatch.

You can read his complete article here

Posted: 04|21|09 at 6:31 pm. Filed under: Financial Markets, Trading Strategy, Finance. Pinging is currently disabled.