The markets hit a rough patch over the last two weeks with volatility spiking higher, both on the $VIX and my indicator. We've seen waves of selloffs on subprime related news and higher oil/gold prices. My timing model did give several BUY signals over the past few weeks but I didn't bother buying. If the S&P500 closes below 1400 then I'll jump on the next BUY signal.
What I believe we have happening here is a churn area. Traders, Investors, and Economists don't have a clue if the markets will go higher or lower from here. Some people believe that inflation is tame, I'm not one of them, and that the weak dollar is good because it spurs exports. Although I'm remain Bullish, I'm very cautious and I really believe that we've seen the highs for the year. Now watch the market make a liar out of me! :)