Editor’s Note: There is a great conference for professional technical analysts from all over the world being held in Chicago on October 8-11. It is open to anyone who is interested in technical analysis and will be a great opportunity to learn about some of the latest developments in the field. Please see www.ifta2009.com for more details.
Last week’s low locked in the initial July-August rally as a complete pattern, so the rally later in the week is viewed as the beginning of a second leg (a likely “C” wave) in a larger post July rally. Moreover, sentiment continues to show a healthy level of skepticism and the point and figure Bullish Percentage indicator is at a post-March high for both the DJIA and the S&P 500. All of this suggests that higher highs are yet to come in this post-July (and post-March) bear market rally pattern.
The above is a tidbit from the just released Short Term Review, which includes comments on stocks (US and global), yields and bond prices, the dollar, and both gold and oil. If you'd like a copy and think you might be interested in becoming a charter subscriber to our newsletters and daily comments, please e-mail us at wmgallc@gmail.com.
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