Wall Street Money Letter

Market Commentary

The stock market, as measured by the Dow Jones Industrial average, continues to remain well above our major short term trading channel support area of 13,500. As long as the market continues to trade above this level, markets can continue to trade higher. Our upside forecast for the Dow is the next area of resistance in the 14,200 area.

Our cyclic time frame continues to expect a 25 year cycle low due sometime this year as its last cyclic low was in August of 1982. So far, the markets low point in March of this year in the area of Dow 12,000 does not qualify as yet as this expected low point.

Another concern we have is that the usual Presidential Cycle low, which was due last year did not occur which makes this the second time in the past one hundred years that this Presidential Cycle low did not take place. The first time it missed or was late was back in 1986 and we all know what happened the following year.