Weekly Update 06-21-2010:

Last week we mentioned the range from 1040 to 1107 in the S&P500.  The 1107 represents a 50% retracement from the 5/13 high of 1173 to the intra-day low of 1040 on 5/25.  Last week on Tuesday, the market broke above the 1107 area.  It is normal for a retracement to be 50 to 60% and occasionally, 75% of the previous decline.  In this case 60% is in the 1122 area and 75% is in the 1142 area.  So we will see if it appears that the market will be nearing an intermediate term top in the next few days.  This retracement is too close to a possible top to bother with trying to go long on this particular move; therefore we will remain in our SELL position.  Yours for Safe Sailing in Bull and Bear Markets.