As we have predicted, the
DJIA faced resistance at 10400 level. On Friday it went down more than 260 points out of bad economic data and poor cooperation reports. We said before that if the Dow fails to achieve 10400, there will be a big bear market waiting ahead. With the confirmation on Friday, this is very likely to be true, unfortunately. My personal guess is that the market is going to decline to about 8000 and then come back again at the end of the year.
I have already reduced my long exposure and begin to bet against the market. This is going to be a tough summer for investors. Be patient and I am sure the market avalanche will turn out to be a good buying opportunity by the end of the year when the bulls coming back.
