The Test Results Are In!

I told you this morning that the market had a test
to face today. After all, MSFT news was supposed to save the
day. TEST TAKEN…TEST MISERABLY FAILED!  

 

Let me be as clear and let me be as blunt as possible. This is BEAR
MARKET ACTION for the NASDAQ/SEMIS/TECH/BIOTECH/NASDAQ 100
STOCKS.

 

If you have been listening, this ugly has passed you by. If you have not,
you may want to start. As I have told you on many occasions in the past few
months, I believe the top that was put in place in January is the top for
the bull that started in March 2003. I do not believe we are consolidating
like many believe.

 

Keep in mind, I  made this same call in 2000 and no one believed it then
either. I believe in what the market has to say. It is speaking loud and
clear. Despite analysts falling over each other defending these
areas…despite all the continual bullish talk, THE MARKET IS
TALKING A DIFFERENT STORY.

 

That leads me into the rest of the market. Very simple! It is my contention
that the process of topping will take a little longer in the
NYSE-TYPES…but that process is now well underway. That’s the way it always
occurs. The NYSE-TYPES will always outperform the NASDAQ in bearish phases.
A break of the May lows for the  DOW and S&P 500 will more than confirm
these thoughts. Speaking of the DOW, its 50 day average has now also closed
below the 200 day average. I reported in May that the first important sector
in which this negative crossing occurred was in the SOX. Please get the
hint!

 

I gather I have been loud and clear enough.