Basically just thought i would update and share the chart with the bigger swings in the market with you all, we have now exceeded 30 days of this down trend so i am expecting it to run to at least 60 days now. This take it into the middle of June i feel a key time as there are a few important turn dates in there. I do however have a few starting at the beginning of June so this week i think is going to be interesting also. Should be a bit of a fight between the bulls and bears and definitely not a time to be taking sides either way although i am feeling the down side has more potential.
The other Chart i have here is a 5 day cycle chart that displays the period when we were in an uptrend the 5 day retracements that we experienced or in this general time frame. Now that we are in a down trend i have noticed that we have maybe reversed this position and will have 5 day rallies followed by a continuation of the down trend.
I am not sure how much more down side we have but i certainly am not putting 4000 out of the question and think that it is definitely a possibility.
If we do get another steep down leg to 4000 i would be happy to begin to recommend some blue chip shares (preferably high dividend paying ones) to begin building a long term portfolio as if the yields are around 7% say with good growth potential stocks it will be a good time to start a portfolio in an otherwise weak and fearful market...if only i had a broking firm to work through sigh...
Well that is it from me for now looking forward to this week should be plenty of volatility again.
:)
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