Timing Market Turns for the S&P 500 Index (SPX) - 04/09/2006

Market Timing - posted at 1850 EST


Swing trade - SPX 1298 stop hit - 100% cash positions.

Investor core - SPX 1298 stop hit - 100% cash positions.

We would like to see a downward or level opening. That condition would likely lead to an upward bias to the entire day on Monday. If there is a higher close on Monday near SPX 1314, we will consider entering short at the close. If the close is above SPX 1320, we wait for the action and structure on Tuesday to give us a better signal.

A lower close on Monday will also keep us in cash since we do expect the indexes to make an attempt to move upwards.

Index funds that take a contrary or bearish position on the indexes may be appropriate for individuals who don't want to carry the liability of leverage in futures, options or the margin risk of shorting stocks.

The coming weeks will be quite extraordinary in view of these many weeks of topping.


We will update here on the SPX only, during the pre-session tomorrow morning.


Good Trading and God bless

W. B. Busin