Timing Market Turns 01/25/2006

Timing Market Turns 01/25/2006

Market Timing

Investors and Traders

As we previously stated, the January 23rd date was a Turn date, and we did go to 100% long in our swing positions and our core holding positions. We have not been impressed by the upward move so far. So we have set a test for the market for both investor (as in our core position) and for traders.

For this upward move to have a chance to go further than 3 days, we believe it must get over Dow 10,760 and SPX 1278 on a close today. Then it must hold that level on a closing basis.

Failing that measure will cause us to doubt the strength and potential of this movement in the short term (3-5 days ahead). We will be looking for a prominent sell signal near the closing today if either or both indexes have not met the criteria.

On the downward potential, our key level is now SPX 1257 and Dow 10,600. That is not much of a buffer area, but that is how we are treating this narrow range structure. It’s a proverbial fly or die day.

We’ll update later in the morning and perhaps in the afternoon at http://timing-market-turns.blogspot.com/ , if the indexes are not performing according to our scenarios.

Good Trading and God bless.

W. B. Busin