Dear New World Investor:

This week’s issue is one day early to allow for my travel schedule to the Money Show at the Marriott in San Fransisco.

As I said in the Flash Alert on Tuesday, I think the S&P 500 wants to do a test back down to 960, with a possible intraday spike down to 912. But time is running out, because this whole downturn should be over by Friday or Monday, Day 30 or 31 of the new 86-day cycle, with the next leg up to September 10 starting then. Many bears who missed the rally are now following Henry Blodget in claiming victory by having stayed out of this “sucker’s rally.” It won’t take much more than one more big drop into options expiration this Friday to get the weekend news stories talking about false rallies, Great Depression comparisons, W-shaped recoveries, increasing unemployment rates, increasing foreclosures – did I miss any other negatives that are widely-known and thoroughly discounted by the markets already?

After breaking 990-995, it is very typical to see a test back up to the breakdown area. The energy for this type of rebound

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