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Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Thursday, February 07, 2013

Stock Market -- Daily Chart

The market rally, which has been humming along since mid - Nov. has hit overhead
resistance on the SPX just under the 1515 level. The market is working off a short term
overbought condition and has yet to move into a situation which would generate strong
warning signals that a significant correction may be at hand. The SPX is mildly extended
on a three month price channel basis now bounded by 1450 - 1490 and could fall to test
the 1450 - 1460 area in the short run without violating the base uptrend line in place since
mid - Nov. Since the short term seasonals call for weakness in Feb., and since a nine
month cycle price low is due this month, you may want to switch off from cruise control to
manual for a spell if you have been coasting mentally through the recent advance. SPX Daily

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