snippets from my weekend report, page-7

Hi PP,

"Are you assuming the primary trend is bullish or bearish here (prior to reversal)? It could be viewed as a (bearish) correction within a bear market rally, a resumption of a bear market after a correction, or a pullback within a new bull market I guess - which one are you referring to?"

The correction I'm referring to is a correction of the clear trend from early March 09.

Whether these corrections or trends are primary, secondary, bull or bear is a moot point depending on how you want to define those - and there are plenty of varying ways to define such matters.

Using Dow Theory on the American Market, the current rally there is a Secondary Correction of the Primary Trend.

If one uses the divide of a 20%+ move as a change in trend from Bear to Bull, then we are in a new Bull market.

If you look at EWA, the ETF on the American market which tracks the Australian market, it has had a double whammy - a big rise in both the Ozzie Market and the Ozzie Dollar. It has had a massive 71.6% rise from early March to the recent high seven days ago. Slightly bullish? LOL

I might also point out that EWA on a weekly chart has risen to a large gap (or "falling window" in Candle Stick terms) which appeared back late September 08. This is a major resistance level on the EWA chart.

So choose your poison. (There are other definitions.)

How you want to describe the current situation is up to the you, or me or any other commentator.

I don't really think it is all that important what definitions one uses. What is more important is the significant levels which might be broken one way or the other. Those were clearly defined. Breaks one way or the other through those levels might provide guidance. (Of little use, of course, to the day-trader.)

3930
3700
3500
3100
34-Day Simple Moving Average.

Cheers
Red