comments and outlook for 05-03-2011

Given the weekend news one may have expected more enthusiasm.  Got a little upside (as I said we might) early and then drifted (as I suggested we would).  In spite of the news the market behaved as expected from my read of the cycles.  This is what we would expect as the 22TD cycle tops. 

Tomorrow I expect we might again get some up push at the open.  I do not think we will test today's highs and that the rest of the day will show some weakness.  The 3 shorter cycles are down (11.2TD, 5.6TD, 2.8TD) are down.  The 22 TD cycle is topping and should tum down by Wednesday.  There is a short one day cycle that may give us a minor positive open.  We should get a hard down starting by midday that should last in to Wednesday.

Here is a visual:

GL traders.  Do your own analysis.