Market Comment

Market volatility has been in steady decline since the huge spike recovery from the low that occurred in mid-2002.

When markets fell sharply at the end of February, they were out of gas, and had nowhere to go on the upside - stuck riding along resistance trendlines in long term uptrend channels.

As I see it, the late February setback was the first leg (A) in an ABC intermediate term correction that was due in order to clear the air in an otherwise healthy market environment. If I'm right about this, it could take weeks to complete the reactionary "B" wave, before a "C" downwave can get underway.