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After a brief minor correction at the open, prices launched into a nice
ballistic curve until late afternoon, up 10pts in a nice arc, then over
the top and down 20pts.  It gained back about half of its afternoon
losses, still closing down about 5pts, below the 200-day moving average.
Volume increased to 6% above average.  So sellers were determined.

Wall Street isn't buying the rosey scenario we hear about improving
corporate earnings.  Neither is Main Street.  The UM consumer sentiment
index dropped again for the fifth straight month to the lowest level in
a year, below expectations.  So this was another step toward a Bear
Market.  If you don't think it could happen again, you could look at a
3-year chart of the S&P 500 and easily interpret it as a developing
Head-and-Shoulders Top formation.

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

 __>_     _     __>_     05/09
 _|__     __     05/10
 __|_     __     05/11
 __     05/12
 __     05/13

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:  05/12/05 S&P:    1159
Winner or Loser:  Loser                 By:     -12

See my market tracking charts for '03-'04 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

... Gee! How'd you ever get it to do THAT?
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