Actually, it reminds me more of the June July period in 2001, when the market made a two three months massive top and my indicators refused to turn bullish, I sticked with them and while I had to change late in July the double bottom model (August/October) to the coalescence model (Sep16/2001), the turnips were right in staying their course. We have a very similar setup right here, it may mean that instead of three legs down, we may have just two but I see nothing that points to 1260 having been a bottom. Not by a long shot. We have been around here for more than a week and the new highs rae not expanding (they are almost at the same puny level they were at 1260) the volume is contracting, the P/C ratio is close to .5 and the list goes on. I say we are at an extremely dangerous level here and reiterate the "run to the hills" call from January 6.
Zeev
