Hello friends. I have kept this report shorter. The primary change from my last report is that action in leading stocks has become worse. I believe the tape last week masked such weakness.

I'd like to emphasize the importance of an open mind. I am prepared for a strong down move. But just a couple weeks ago, I thought the conditions for a bear market rally were emerging; however, the action quickly deteriorated and caused me to reassess the situation. I urge everyone, especially those who are new members, to do their own weekly reviews for your own records. Doing so will improve your situational awareness and reaction times. The weekend is a good time to do it because the market is closed, and you can focus on longer timeframes to put the daily action into context.

Best,
Eric

Market Observations 10-3.pdf