Well I am back from vacation, after a tour of Europe covering Switzerland, Austria and Hungary. For anyone visiting Europe, especially Austria I would highly recommend visiting Krems an Der Donau (Krems on the Danube) especially the beautiful village of Dürnstein, which is overlooked by a castle where King Richard the 1st of England was held prisoner for a ransom of 35,000 kilos of silver by the daring Austrians.

Rested and eager to catch up with the latest developments in the Stock Market I was relieved to see that my last market update on the 5th of August was indeed very timely.

I suggested that the market was showing signs of slowing and that you would need to have a contingency plan ready.

• If price breaks below the 200 day MA – move to cash or go short (two days after my report price broke temporarily below the 200 day MA & 3 days later we saw a huge 2.82% plunge through the 200 day MA)
• If price rests on the 200 day MA and pauses for breath, then starts to advance, go long and look for higher volume. (for 4 days the price did pause for breath, before plunging downwards)
• We may see some sideways movement over the next few weeks, so maybe a good time to take a break. (the sideways consolidation lasted 4 days before the move down)

Since my last note the SP-500 is down over 5.3% and has resumed a short term down-trend, which adds to it’s medium term and long term down-trends.  Down is the direction of the bear.

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