The tentative forecast for the trading week ending April 10th is now posted. (click “next week”)

We expect the market to continue to rise as forecasted into the close of the 9th / the open of the 10th area and then decline from there.

The current forecast doesn’t look that great because much of the weeks range occurred in a down gap on Monday morning.  The turn in the market came a few hours early.  As mentioned previously, the market is excited to go for some advancing.  This is largely due to a seasonal tendency for a decline in volatility during this period (which is bullish).  The overall market rating remains bearish.  This is a longer term market rating; longer in duration that the forecasts.,  There is also a seasonal tendency for a high around June 17th (plus or minus) and some longer term cycle work showed us as being up, as I had mentioned in previous updates, for a good month or so.

So much of our price action lately has been gaps, it is hard to trade because one overnight gap can be several days range. This tells us there remains to be a lot of uncertainty in the markets.  The price action is dominated by strong swings from sell-offs, so bullish trading may be safer in the present term. The updates and alerts have also done well this week, but because of the gaps, it has not been able to capture a lot of points.

Please also be cautious when we hit our key levels very early in the week (as in Monday and Tuesday this week).  These are areas where you can lock in some profits, however, as always, this is a double edged sword because you can miss some big winners by taking profits earlier; so use caution.

Last week and this week, the magnitude of the forecast on Friday is quite large with respect to the rest of the week.  When this occurs, please be aware that this magnitude may not necessarily materialize, but that the overall direction at that time is anticipated to be in the direction of the forecast.   Often, in these cases, the forecasted move may come a bit early.

Key levels to the upside are the 845 and the 874 level.  To the downside the 820 and 810 areas are key.  I will update these again on Sunday as market conditions change.

Wishing you the very best,

Rob, Vadim & staff