The January 19, 2010 to February 8, 2010 decline should be the first of many steps to the down side. Following the end of the rally from the February 8 lows, we expect the market to drop precipitously throughout 2010.

I am awaiting the beginning stages of a long and compelling decline. Declines over the past nine months have been shallow and short-lived. A solid close below S&P 1,040 should confirm that a top is in place. The first leg of the decline should draw the S&P to 900 or below within the next 2 - 4 months.

My trading strategy is a simple plan and to be successful it should be followed without exception. I am trying to be fully invested at all times. But there comes a time when the market goes through some major correction and we need to be on top to protect our investment. On the other hand, when the market is up-trending we need to take full advantage to reap the benefits of being a swing trader.