BECAUSE the DJIA [ most watched ] has so rapidly bounced upwards off the 6400 level and almost reached the 7500 level, as called for in ONE Scenario, I have been soul-searching and researching every possible technical indicator at my disposal to determine if this "CORRECTION" could turn into a DEBACLE that took us straight to 5000. Yes it is possible, at least from a view of one Breadth Momentum indicator. NO, IMO, it is not the likliest thing to happen, but you have got to admit, stranger things have happened.
I am watching ASIA and will be sampling the Pre-Market. Several Indicative measures including a number of flavors of MACD Do NOT favor this extreme development manifesting, but that doesnt mean a hard correction wont scare the liver out of you.
SHOULD you feel UNTOWARD developments unfolding, you may HEDGE by ACQUIRING
TZA, which is a BEAR ETF, reproducing 3X the INVERSE Move in the $RUT. Here you must DYODD & DYOHW. Even in a basic downturn, TZA will move hard and fast. DO NOT get into TZA unless you know wish to take that risk in order to hedge your NON-PM Holdings.
Two of Three of my indicators combining differing processes DO NOT CONFIRM this manifestation of a straight move to 5000 now. That may or may not change, but I will post any changes as soon as I know them.
Good Luck All,