Another Support Test For The Dow 11K Coming Up Screening Time 9.30pm (local time)

3 Red Bears On The Trot; What About The 4th?
It's been 3 long red candles in 3 weeks and the DJIA is once again testing support in the 11000 area. The senior average first exceeded 11000 on April 14th and then moved into a trading range. While a support break would be short-term bearish, it would not be enough to affect the bigger uptrend. After a 1300 point advance in just 11 weeks, the Dow was overbought and ripe for a pullback or consolidation.

Even the best athletes need to rest after long sprints. Should a correction unfold, we can turn to broken resistance and apply the Fibonacci Retracements Tool to estimate downside targets. Broken support and the 38% retracement converge around 10700 /10718 zone for the first target.

The eight-week rally came to a screeching halt this past week. If you're looking for a silver lining, the Dow Jones Industrial Average managed a weekly close above 11,000 >>> but just barely.

Fortunately there are still some key economic and earnings reports slated for release this week.

All Is Not Lost; WS Bull Has Plenty of Life Left
Nonetheless, in the long term, the overall trend is still firmly higher. We've been bullish at ZLBT's for over a half year now, and we still expect higher prices down the road. Remember, trends tend to last a long time once they get started. In fact. the average bull market has averaged between one to three years, and no bull died before its first birthday. With that in mind, if history repeats, we should continue to rally until at least until Q4 with random bouts of profit takings and pullbacks, Greece or not greased.

Turning to immediate concerns, one major concern of mine is we are seeing levels of bullishness consistent with short-term peaks. So, in the short term, we have some concerns, but on a longer-term basis, things look great. One big reason is , US internals economic numbers remain very strong. As long as this is the case, the overall trend will continue to be higher.

Put simply, advancing volume is stronger than declining volume. This is obvious given that Wall St is bullish, but as long as respective indicators & oscillators keeps making new highs, I view the bull market as being on very sound footing, and the path of least resistance should continue to be higher.

So, we have some legitimate concerns in the near term, but seasonality is actually very bullish. The old adage on Wall Street is "sell in May, and go away," but the only problem is >>> Market tops are famous for seeing enormous stock mutual fund inflows, so as long as we keep seeing this, euphoria isn't anywhere near happening.

Bull markets are born during despair and die during euphoria.

If that's truly the case, then this bull has plenty of life left.

HOLD ON TO YOUR HAT.
It ain't over till it is over