Berge Report...commentary

...a few short-term get ready to sell signals were triggered as a result of the

mid-March pullback in the averages. With the minor new closing high in the DJIA last Monday, those get

ready to sell signals became sell signals as these short-term technical indicators recorded lower highs

against higher highs in the averages.

This is not a sell signal in the sense that long-term investors should start raising cash in anticipation of a

significant decline. It simply confirms objectively what we have thought for the past few weeks, which is

that upside potential in the near term would remain limited until after the market declines more than a

mere 1-2%.

Susan Berge