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Any given day in in the world there is a car accident involving 4 people. In the accident 2 die and 2 survive. Depending on what our expectations are determines our reaction.

The stock market has come under pressure as of late even though the Expectations Indicator signaled low expectations on 6/12/2012. The stock market is higher (as of this posting) as of 6/12/2012, but the recent activity may draw question to the Expectations Indicator signal. Although it may appear the bears have taken control of the stock market, the fact is the market is trading just as a low expectations market would.

Expectations came off their high readings and almost triggered low expectations on May 29, 2012. Since expectations were unable to cross into the low expectations threshold a bear market bias still exists according to the Expectations Indicator.

On April 18, 2012 the stock market’s expectations passed into “High Expectations” territory thereby triggering a bear market bias. Although on a typical expectations cycle we would see the “Expectation Indicator” peak in “High expectations” then retreat immediately afterwards, but

Today the Expectations Indicator triggered High Expectations. When expectations change from low to high we could expect the stock market to become bearish.

Although the Expectations Indicator has triggered a Bear Market, Expectations remain low so we should interpret this downward move in the markets right now as a correction and not the start of a larger bear market move….YET.

Most times when we get what we want the most it turns out to not be what we expected at all. Some call this a fact of life and others call it a cruelty of life. Either way we can say that nothing really turns out how we expect it to be.

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The Expectations Indicator signaled a Bear Market on September 16th, 2011. The Expectations Indicator signaled Low Expectations on October 3rd 2011 . The market is experiencing a Bull move within a Bear Market.

Although the Expectations Indicator has signaled a Bear Market, it has also shown that expectations are low and therefore giving the market the momentum it needs to form the right shoulder to a “head and shoulders” chart pattern forming on the Dow Jones Industrial Average.