As I noted last week, the average historical outcome of similar combinations has been negative, largely
because the
deterioration in
economic pressures tends to trump technical action even when it has been more favorable than it is at present.
Overall, my impression is that the near - term dynamics of the market are likely to be dominated by this sort of speculative trend following activity - primarily
because it will probably still take another 4 - 8 weeks until sensitive coincident
economic measures (such as ISM figures and new claims for unemployment) begin to predictably reflect the
deterioration we've seen in various composites of leading indicators.