Qs, SPX, DOW, Nasdaq met 1st Targets

With FOMC meeting during next week, major markets traded to targets area, e.g. Qs 48 +/-. Qs near daily DTL after tagging 47.79 with 48 +/-R, DOW 12891.86 with 13000 R, Nasdaq 2422.93 with daily DTL at 2450 +/-.

Since the double bottom, as noted on 3/17 and 3/18, after testing LT supports, as shown on the weekly charts markets traded to weekly resistances after breaking out of the falling wedges noted since 3/19/08. Falling wedge formation is a bullish pattern. Since the 3/17/08 double bottom at SPX 1256, DOW 11756, Nas 2155, and Qs 41, markets have rallied 11%, 10%, 14%, and 17% respectively from the lows. I noted the double bottom in Jan-Mar 2008 likely to be the low for 2008 with the target of SPX 1650 as commented on 1/25/08.

I expect a pull back after the Fed announcement from the current resistances as we are at ST cycle pivot going into next cycle pivot in Jun. I am anticipating SPX 1330 +/-, Wave 2, will hold closing gaps which we have and that will set up Jun rally going into EOY. This is the "Wave 4" scenario from the Oct 2007 top. During Dec 2007, I explained technical and fundamental readings going into Jan-Mar 2008 double bottom as a meaningful correction from the Oct 2007 top.

While markets have not broken out of the IT down TL above 1400 +/-, I believe that markets will break above it going into EOY to SPX 1600 +/-.

IMF Reform and Global Growth Forecast

MF forecast on global growth

LT financial market performance, fundamental factors are important. As you can see on the global growth chart, the current growth level is slightly lower than that of 2000 even though financial market level is not. One of the reasons is that we are in global economy. While many stocks are sharply sold off, e.g. C and AMD, some stocks are doing well which is supporting markets.


Based on my analysis on US GDP growth projection by "IMF" shows that US is at a bottom and projected to grow going into the second half of the year. This confirms what Bernanke stated.

Real GDP outlook shows that US GDP will see a sharper rebound to 2006 level going into 2010 while emerging economics will be leveling off.


IMF Reform: Statement by Secretary Henry M. Paulson, Jr.

Washington, DC –Today ' s meeting takes place against the backdrop of considerable challenges to the global economy. In recent years, global economic conditions have been quite favorable, with growth averaging nearly 5% per year. 2008 will be a more difficult year, with headwinds coming from adjustments in the U.S. economy, financial market stress, higher commodity prices, and higher than desirable inflation. Downside risks will vary, and many European and emerging market economies have stood up relatively well so far to the recent financial turmoil, but no economy is entirely immune from global forces. In this context, it is critical for policy makers to put in place sound policy frameworks that support growth and enhance economic resilience.

Suffering USA by super-duper class

VIX: Big wealth greed power destroying USA.

Not many do anything about it, not even a few, like modern saint Bill Gates.

Bleeding Markets: dracula teeth is again sucking out 401k holders and American wealth, now, they are to their bones.