Market Timing and Daily Update

As expected, the markets pulled back yesterday.  In addition to the statistical reversion to mean, this is also a short week as we go into the Easter holiday with Friday being a holiday.  Investors are also waiting to hear both earnings and guidance from companies to gauge recovery potential.   Interestingly, the RSI strength scan showed a solid number at 256 which means that there might be quiet accumulation going on with the big institutional investors.   In other news, the talks between IBM and Sun Systems (JAVA) have broken down.  GM is reported to be accelerating plans to go into bankruptcy, or Chapter 11.  Alcoa reports earnings after the close today, which is considered the kick-off for earnings season, which may also be contributing to a indecisive trading day, as investors and traders wait for news.

Oil remains around $50, while gold and silver are regaining some of their losses from yesterday. 

 As of this writing, futures are negative and the DAX is negative, indicating a negative open.    The market condition scans remain neutral, giving no indication on short term market direction.    The institutional and RSI scans were strong, indicating institutions are starting to accumulate slowly.  The market bias indicators continue to show a negative bias indicating we should continue to see a correction in the next one to five days.  After the pullback yesterday, market bias indicators are neutral.  This suggests a choppy indecisive day, which is not the best for trading.

Index	Change	%Change	Level	Phase
TSX	-49.59	-0.55%	9016.17	Recovery
DJIA	-41.74	-0.52%	7975.85	Recovery
Nasdaq	-15.16	-0.93%	1606.71	Recovery
SP 500	-7.02	-0.83%	835.48	Recovery
Russell 2000	-8.54	-1.87%	447.59	Recovery
NYSE	-69.27	-1.30%	5249.48	Recovery

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: moderate

 Primary Trend: Remains down to sideways

Sector	Phase
Consumer Staples	Bearish
Healthcare	Bearish
Technology	Recovery
Utilities	Bearish
Energy	Bearish
Financials	Recovery
Industrials	Bearish
Materials	Recovery
Consumer Discretionary	Recovery

Source: Telechart