I have received some questions about what our computer program HAL 3000 is indicating. It worked great last year so I wiped off the dust and lit the fires to see what HAL has to say-
" The Market action the last two days has formed what it calls a small "Chart Cut".
This usually means that all previous formations up until this point are erased. The trading programs start new formations today. This means that the double tops in Dow, SP500, and the PMI should be ignored because the previous formations up until today may be of little meaning in the short-term. A "Chart Cut" is a fairly rare event and usually happens around crucial inflexion points. Without this formation, the markets look extremely bearish. Our response is to step away and watch for the trend. Dow 11800-12000 remains the battle ground.
Stay tuned.....
