I found this great blog over the weekend. This article by Paul Ebeling sticks his neck out and will be easy to judge. I myself think the market acts very weak here and am raising cash.. This could change quickly but right now my weekly charts are doing nothing to confirm my daily charts. When in doubt I alwasy raise cash, put on shorts, and reduce the size of my committments. This has kep me alive through many a bad spot and prepared to fight another day. 
This report from Paul Eberling is a fantastic find. Their blog www.livetrading.com has rapidly turned into one of my favorites
What to expect this week and down the line…
The US market indices remain inside their trading ranges. The S&P 500 and NAS have good support at the range lows.
Looking at our leaders: they are holding up after last week’s selling.
The focus this week will be the strength and commitment of the “buy on the dips” players if and when the sellers attack to try to force the action through the bottom of the trading range, that will be the test.
Usually after the kind of action we saw last week there is a bounce to test. This is an area and time that requires care, diligence and patience.
One or two days does not make a lot of difference IMO. Waiting to see where the market test is Key, I expect a bounce, a test and then a set up for the next leg up.
Again, patience and look for the upside plays in here on the based leadership and defensive issues. The downside plays look to me like they are finished for the time being
The market does not like the weak US economic data and so it is testing the trading range, the decline has been about 5% off of the April highs, that’s enough to call it a correction from my POV, though there is another 2% possible.
That makes for opportunity as I see it for the long term,
The Obama Admin and the US Fed are likely to extend QE in some form to keep the slow growth on track. And I see many good stock that are undervalued in this scenario. See them profiled daily on www.livetradingnews.com
Have a terrific week.
All the best,
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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ew. My own read of the tea leaves is that I’m not ready to buy this dip.