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The market moved steadily higher all day, closing up 16pts.  Increasing
volatility reflecting this correction means my "significance" number is
now right around 12pts.  So that's enough to get my attention.  However,
volume increased only marginally, to -5% below average.  No cigars!

The prices are just a head fake.  Investors were far more anxious to
sell during the correction than they are to buy now.  One thing that is
good to see is the Advance-Decline Line rising, as evidenced by the
Oscillator.  Generally the broad market is recovering together.  We
don't like seeing prices rising but breadth narrowing.

So if we need some short-term tactical trades, maybe this "recovery"
might serve, but keep your finger on the trigger because I don't see any
evidence it's "got legs".

After all, it's the first of June.  Summer's coming.  What goes with
"Summer"?  "Doldrums!"  That normally isn't the time to
try for easy
money in the market.  Don't neglect or ignore the market, but also don't
try to make something out of nothing.

 Price    Vola-    Momen-   Volume   Oscil-   Summ.
 Change   tility   tum               lator    Index
 -__+     -__+     -__+     -__+     -__+     -__+

 ___>     ___>     ___     _>__     __<_     05/25
 __>_     ___>     ____     __>_     __<_     05/26
 >___     ___>     ___     _>__     __<_     05/30
 __|_     ___>     ___     __>_     __<_     05/31
 ___|     ___|     _|__     _|__     __>_     __<_     06/01

Timing Signals:  I don't use or recommend timing signals, but they're
fun to watch.  If I did though, well, I might use something like this.
(Be warned!!  It tends to whipsaw around signal points!)

Last Signal: SELL       Date:  05/12/06 S&P:    1291
Winner or Loser:  Loser                 By:     -16

See my market tracking charts for '04-'05 and my investment strategy
study at my website(s):
http://www.xprt.net/~pgrogers/Pers.html
http://www.geocities.com/paulgrogers/Pers.html



Paul Rogers, paulgrogers{at}yahoo.com                       -o)
http://www.angelfire.com/or/paulrogers                   /\\
Rogers' Second Law: Everything you do communicates.     _\_V

... Fortunately, I had a backup dated 1/1/80
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