Equity Market Comment - 4/30/2008

The market today broke out of its ascending wedge pattern to the downside on increasing volume which is a bearish pre-cursor to lower stock prices.

We also had an outside day with a down close which is also a bearish pattern.

With these two occurrences on the same day seems to give some credence to the possibility that a corrective mode is starting.

It is this corrective pattern that is going to give us a very good idea of what the equity markets may be facing over the intermediate to long term.

I continue to believe that this move lower should be very limited and the lows at 1260 not being violated, but the market will have the final say so on all of these theories.