Market Analysis for Feb 22nd, 2005

For today's Mid-Day Minute, Mike writes: The only thing my work is sure of is that the pattern in the Qs is bearish -- and has been so since the 12/15 high of 40.68. The question I have right here (37.12) is whether or not the decline from last week's high at 38.48 to today's low at 36.96 is the end of the first downmove of the next DOWNLEG? If that is a true statement, then today's rally from 36.96 to 37.54 either is a completed recovery rally or part of a recovery rally that should revisit the 37.50 resistance area prior to a powerful downside reversal -- and plunge to break the Feb low at 36.46 -- on the way to 35.50. Can we afford NOT to be positioned in a small short position at least? The answer is no. We must be in at least a minor short position at this time -- and look to add on into subsequent strength.

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