W.B. Busin Broadcast #3 Tuesday, February 27, 2007

1420 ET

Now what about a bottom? Where is the bottom for this leg
down of the correction?

Sentiment indicates we are near a short term low, as in a small
reversal upward followed by more downward. It won't seem
like much, but the Tuesday, May 30, 2006 down day crushed
sentiment on a 1-day change. Price only dropped 20 points
and reversed the next day. Four upward days later came
the beginning of the decline into the mid-June lows.
Sentiment is currently at those same relative sentiment levels.

Not to discount a massive intraday reversal, but we believe it
will be difficult to recover the following levels at today's closing.
Closing at or above SPX 1437, Dow 12,565, NDX 1800 and
RUT 818 may maintain an uptrend. We give this a
5% chance of occurring in our most optimistic scenario.

In view of the extreme oversold sentiment and
technicals, we will exit on the closing today to
lock in some profits. We expect at least a modest
reversal upwards tomorrow.

We will exit to cash in all Swing positions in the three
indexes at today's closing.We may enter a small long
position on tomorrow's opening if the Yen settles back
to more realistic levels overnight (versus USD and EUR).

Bernanke will be trying to calm a few cases of
'market hypertension' tomorrow. He will likely be successful
won't he? He can blame Mr. Greenspan for the recession
talk he gave yesterday.


WBB