After bouncing up and down Monday thought Thursday, Friday's action was very encouraging. We had a second straight up day. We hit some near-term resistance, but this rally is not going to lead to new highs, and it's a rally that should not be bought.
This type of "overhead supply" will trigger selling on market strength, as the shareholders who bought in at higher levels try to recover their money. That will keep a lid on the market, and makes it likely that the May high will stand. When we had the flash crash it took four full months for the bottom to form. That led to a good rally that started Labor day and lasted through April. We're probably three to four weeks into this, and it's going to take two to three months at a minimum. This is where you're going to have to see the chart data and determine if we have made a base. http://www.cnbc.com/id/43970747 '+'
