Don't be beguiled

[richard5za]

In my view we are in a longer term bear market, and like all bear markets there are rallies from time to time. My charts are predicting an upward movement in the Dow to test the 10300 resistance level; that's the time to sell if you are still holding general equities. Longer term the Dow is headed below 6000 and perhaps very much below 6000.
In the short to medium term I am also seeing a rally in gold, oil and commodities, and a return to weakness in the dollar. So expect some happiness to return to investors for a while, but not for long.