2007-3-20 2006-10-31 Tonight we are going to talk about corrections during longer-term trends. Currently, we believe the stock market is in a long-term uptrend and we have so far witnessed a drop of a little over 8% in the NASDAQ Composite. Typically, corrections last from 7%-12% with the majority above 10%. Therefore, the current pullback can easily be labeled as a correction and not a new downtrend. Not only did our system not even come close to triggering a sell at the top last month, but the recent drop has been on enormously high volume and sentiment has become quite bearish. The high volume suggests a magnitude of selling and reversals occur when the selling has exhausted. Today, QQQQ had its highest volume day ever with a total of 235 million shares trading hands! The ETF was much more volatile today than it has been in months and after all of these shares traded hands, the gain was rather contained. This suggests that there is an incredible struggle going on now between the bulls and bears and there is currently an indecision in the stock market. Supply and demand are matching. Usually after such a day, the stock market will begin to reverse. Therefore, we believe that today's intraday low very possibly marked the bottom of this correction. If not, with volume being so high and sentiment so bearish, the bottom should only be a few percent lower. 153255 text/html http://www.nasdaqwizard.com/midweek052406.html 1.0 EN index,follow Percentage corrections during long-term uptrends text