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Weekly Outlook for week of 5-10

|Includes: DIA, IWM, ONEQ, SPDR S&P 500 Trust ETF (SPY)

      The market ended the week with a continuation of the slide. I exited my short position Thursday because of the insane volatility, and then the market fell more today, not surprisingly. However, the market has reached a big congestion [and possibly support] level right around SPX=1110. Also, the low for today was much higher than that of yesterday. Whether or not that has meaning, based on the fluke yesterday, is debatable. However, this happening at the big support area could suggest an end to the down segment. This would place the end very close to the original projected range of between SPX 1115-1150. The market usually takes a few days to really change sentiment, and it is possible that the slide will continue downwards and be a longer-term and bigger correction. At this point, the market has reached support, and there is a good chance that the direction will turn after a little moving sideways. I'm going to wait for a more definitive sign of a bottom before I enter into long positions. For now, I'm sitting in all cash watching the market drop.

Disclosure: None