07/28/2008

Hello:

Here goes the stock market again, inscribing the classic W pattern. First we see the initial downturn which forms the first downleg of the W. Then comes the dead cat bounce/bear trap rally which forms the middle upleg of the W. We experienced the dead cat bounce last week. Now follows the retest of the low, which forms the middle downleg of the W. That is what began on Thursday.

That means, there is a high probability that we will see the indices retest the lows seen two weeks ago before the market moves toward a true rally -- the final upleg of the W.

Maybe instead of describing the market movement as a W pattern, we should call it a "double eeeyew" pattern. :-)

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager