Down Friday/Down Monday

This week registered the first Down Friday/Down Monday since August 31 and today's failed turnaround adds to the prospects for a mild correction over the next several weeks. October's Month-end bullish seasonality could put it off for a few days, but the first half of November is not expecially strong. We alerted last week in a subscriber email alert that market rally has hit some formidable resistance.

Dow 10000 Hurdle (22 October 2009)
Cost cutting and stimulus have helped earnings so far this quarter and many companies have beaten estimates. But sooner or later we are going to need to see an improvement in revenue. Though the economy is recovering and corporate numbers have been good, the market run up in advance and has entered some what of a what-have-you-done-for-me-lately phase.

This is why the market has run into a bit of a wall. Our resistance level of 10500 should prove more formidable than 10000. This is where the initial Waterfall Decline began in October 2008. Over the next several weeks the market is likely to correct 5% or so back to the 50-day moving averages before reaching Dow 10500 some time between now and Q1 2010. Read more...
https://www.stocktradersalmanac.com/sta/alertDisplay.do?alertId=1298

Our buddy Barry Ritholtz, who's timing has been stellar the last few years, and others have recently remarked that this bull is getting tired and sleepy.

Famed Market Timers Say Rally’s Getting Sleepy
Posted by Steven Russolillo on October 27, 2009
Dow Jones Industrials, Economic Indicators, Economy, Markets, S&P 500
http://markettalk.newswires-americas.com/?p=5745

Many market observers predict tops and bottoms, but few successfully get their timing right. Jeremy Grantham and Barry Ritholtz sit in the latter category, so when they offer their forecasts, investors would be wise to take note.
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Just Deserts and Markets Being Silly Again
Jeremy Grantham
Quarterly Letter – Just Deserts – October 2009 http://www.gmo.com/websitecontent/JGLetter_ALL_3Q09.pdf
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Rally Getting Tired ?
By Barry Ritholtz - October 27th, 2009, 11:30AM
http://www.ritholtz.com/blog/2009/10/rally-getting-tired/
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However, when too many of us are in agreement our contrary antenna begin to purr, tempering our concerns. The break will most likely come when the fewest expect it.