Stock Update - 5/23/10

Are now in a time period until the end of the month that could bring a significant low for stocks. That outlook could bring a test of the mid May and possibly April tops. Must first get beyond the trendline that extends from both tops. Once the low is in, the rally could last until the last week in July. The price low may have been on Friday but if the Dow goes back below the May 6th low, the next support is 9400-9700.

If the bull move up from the March/2009 low to the April/2010 high was wave A of a zigzag, then wave C of that zigzag looks most likely to top around the 1st quarter of 2011. That is based on statistical wave relationships, technical indicators and cycles that I look at. The Fibonacci price targets for a top are Dow 11260-11610, 12375-12500 or near the 2007 high of 14198.