The Dow may hit and hold at 11,000, and may go above it (see Dow projections), but all 0000's are a psychological anchor point that often is followed by a drop. Couple this with a market that has been going up far too long without consolidation, and bears see a downside turn.
At the same time this week begins earnings reports, and we believe the first quarter will look good for a number of companies, which could bolster the market up.
Floyd's bet: Good earnings will bolster the market to as high as 11,176. Any bad earnings could take the market to consolidation of 3%, or near 10,841.
We will move to May issues this week, and provide another "version" of the OEX daily alert that we are trying. We welcome your feedback.
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