The indices managed to maintain their buoyancy all week long, courtesy of an advance back to
recovery highs on Thursday and a near-flat close on Friday. This action allows price to break a streak
of four weekly losses, leaving the Blue Chips a bit above flat on the week while the Techs recovered
almost 2%. This isn’t the type of action we’d expect to be seeing if the next down leg began at last
weeks’ highs. Instead, this week’s recovering action tells us that the larger upward correction that
began at the start of February is still underway. We discussed this as one of three possible near-term
outcomes in Wednesday’s newsletter. Tonight, we can add input from other indices to further this
discussion. We’ll find that these other indices support calling this action part of a larger upward
correction. More importantly, we’ll find that our key upside levels remain as important as ever. These
levels represent 61.8% retracements of the decline that has played out off January’s highs, and there’s
no reason for price to take them out if we’re setting up another big down leg as the pattern portends.recovery highs on Thursday and a near-flat close on Friday. This action allows price to break a streak
of four weekly losses, leaving the Blue Chips a bit above flat on the week while the Techs recovered
almost 2%. This isn’t the type of action we’d expect to be seeing if the next down leg began at last
weeks’ highs. Instead, this week’s recovering action tells us that the larger upward correction that
began at the start of February is still underway. We discussed this as one of three possible near-term
outcomes in Wednesday’s newsletter. Tonight, we can add input from other indices to further this
discussion. We’ll find that these other indices support calling this action part of a larger upward
correction. More importantly, we’ll find that our key upside levels remain as important as ever. These
levels represent 61.8% retracements of the decline that has played out off January’s highs, and there’s
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