Yesterday’s forecast called for a 100-200 pt. decline and although the mkt. was fairly stubborn early in the session, we did see that forecast come to fruition later in the day. 

Bigger-picture.., we have a set up for severe weakness into the end of May/first week of June with a target of Nasdaq 1427 and I would expect us to be back through the March lows as early as the first week in July.

This is a very dangerous stock market set up and that means the market could crash at any time, but I’ve never seen a crash without a decent amount of warning in my intraday model (in other words all model time frames should match up and agree with the idea of a crash) so, if they’re going to crash, I think I can give you all a few days advance warning.

Bonds, USD, and Gold are tracking nicely but crude continues to levitate in what should become the “last gasp” prior to the realization that the economy is NOT coming back.

The BAM model says crude belongs down at the 25 dollar level (or below) into the first quarter of 2010 and I’m sticking with that call.

Full report coming soon