WHAT DOES THE MARKET WANT TO DO?

Today the markets traded below the narrow range listed below. For a while, all the markets traded below the January low, but recover by the market close to  challenge the January highs.  Which one will prevail? Stay tuned.

It is time for the market to tell us what to do. See the chart below:  For instance, if the Dow breaks above 17,400 and then makes new highs above 18,086, it would appear that my Lone Bear scenario is either wrong or delayed. However, if the Dow breaks below 17,147 and then breaks below the December low of 17,069 my Bearish scenario would be on track for the Lone Bear Letter! It is the same with reading the NASDAQ and S&P.

                               Dow                     NASDAQ                   S&P

Current                     17,361                4,676                      2,020

December High          18,086                 4,814                      2,092

January High              17,400                 4,700                      2,013

January Low               17,147                 4,605                      1,991

December Low            17,069                 4,545                      1,973

Current	Dow	NASDAQ	S&P 500
	17,361	4,676	2,020
Short Term	Down	Down	Down
Int. Term	?	?	?
Long Term	UP	UP	UP
ForecastedTrend	DJIA	NASDAQ	S&P 500
Short Term	Down	Down	Down
Int. Term	?	?	?
Long Term	Sideways?	Sideways?	Sideways?
Breakout Points	DJIA	NASDAQ	S&P 500
Short Term Up (Resistance)	18,086	4,814	2,092
Short Term Down (Support)	17,147/17,069	4605/4,545	1,991/1,973
Int. Term Up (Resistance)	18,062 See Fibonacci Projections above	5,002 See Fibonacci Projections above	2,486 See Fibonacci Projections above
Int. Term Down (Support)	15,855         /15,356 /14,688	4,166 3,986/3294	1,820 /1,560
Long Term Up (Resistance)	18,974	5,132	3,044
Long Term Down Fibonacci Support	50%12,000  62% 10,750	50%2,958  62% 2,555	50%1,390 62% 1,177
10 yr Treasury 1.67	Gold 1,275 -1.60	Oil 49.90 +0.33