http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=3&dy=0&id=p88572661534&a=214966864

We have now spent 8 days trying to put in a bottom for this downwave.  The result is like boxing with kangaroos — they usually win we understand.  The fact that each attempt to drive the market down has been met by buying (seen from the long tails — or lower shadows) indicates we are on support.  Against this support the big short term traders are trading on news — mainly from Europe — to exacerbate volatility and create short term profits.  For themselves it goes without saying.

News will drive the market until at least mid-month and the date of the next Greek election.  Meanwhile the Wall Street rumor machine is working overtime — Spain will collapse, Germany will leave the euro ….. yak yak yak (and llama, llama, llama).

We have not lost confidence in our long term analysis.  Once we get through the yak dung here we expect to resume coining profits.

We are changing our web hosting so there will be no new letter till Monday.