Little Changed Today - We Remain Bullish

Hello Traders,

Global equity markets on Monday were weak, but looking closely at the clues provided and in consideration of the biggest September run-up in the SP500 Index in the past seventy years as just finished, the selling today was actually quite subdued.

In essence, the weakness was expected for a market catching it's breath, and overall our analysis left us feeling that this is a normal course consolidation in advance of continued bullishness.

So, although a little more weakness could be experienced over the next day or so, we expect clearer bullish clues to surface later this week, and perhaps as early as tomorrow.

However in keeping with our recent theme of an open mind, and the value of having a back-out plan if wrong, we emphasize as we teach, the financial markets should never be described by opinions, but rather by the facts.

So, the next time you are face to face with your professional financial adviser we suggest you say; "just give me the facts".

Also, in our view, the facts speak clearly in the included chart provided. There are mark-up comments for your financial education including three new bearish forensic technical clues to watch for that could make a savvy analyst change views, and become more bearish shorter-term, should the market continue to decline.

Three Chart Facts

1. The first fact that would potentially be the bearish taking out the recent minor support level of approximately 1124 a noticeable recent pivot low. We think this is quite possible.

2. The second more bearish fact, could be any crossing below a valid "intelligent" drawn trend-line or channel line.

3. Perhaps most important of all, since it is a validated theory financial math fact, would be a bearish crossing below a watched key Fibonacci retracement level, such as the approximate 1116 (38.2% R) level on the SP500 Index as we have highlighted.

For now, we remain decidedly bullish and have not changed our outlook or optimistic view after today's market events***

***Please note that we are not attempting herein, to describe, forecast, or call market movements in extremely short 1 - 3 day time frames unless specifically noted or described in rare circumstances.

Readers of our BBTL blog should have noted that our Elliott Wave Five Forecast, in place since the low of early July 2010 is strong evidence that we are both short and medium term bullish.

Please post your questions to the comments section after each blog post so all readers can benefit.

PS - To date there have been very few downloads from the Education 1 page we put up. We believe the editorials posted there will be powerful and refreshing financial knowledge for many of you. Are we wrong? Hint - if there is not sufficient demand, there is little incentive for us to post.

Sincerely,


James Kelly Sr.
Editor in Chief
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