Jim:
As you said:<<<The Dow has successfully tested support in the 10,400 to 10,500 area several times... I think it will successfully test it again as the third FED rate increase nears... Then I think it makes new highs in the 11500 to 12000 range...>>>
I agree, that it tested the 10,400-10,500 several times, to wit: 10,434 on 5/27; 10,487 on 5/28; 10,409 on 6/1; 10430 on 6/11; 10471 on 6/24; 10471 on 6/24 and 10,549 on 8/10.
But remember that it also has traded above the 11,000 level several times since April: May 3 to May 14; 7/1 to 7/20; 8/16 to 8/27(including the H of 11,365 on 8/24); and more recently 9/3 to 9/13.There has been a substantial amount of "profit taking" every time it has traded above the 11,000 level.
I hope you are right that the 1400-1500 level will hold in the near term in spite of the October factor,the FED and the final days before Y2K. I am not so sure myself.
I certainly wish we could go to the 11,500-12,000 before year end.
Regards and good luck.
Bernard |
