December 17, 1999 Favors
Last week we stated the following: "We remain bullish on stock prices here, even though we must allow for some further brief correction for a few days next week. Any decline in the Dow below 10957 intraday will turn the Gann Weekly Chart down, which will confirm a correction is underway. However if that occurs we would look for a low near December 14, plus or minus 1 day. From there we would look for a rally into December 27, plus or minus 1 day."
The Dow did pullback early this week but was able to hold above 10957 intraday. The actual intraday low this week was 11012 on December 14, the exact day which we stated should mark a low. The Dow has since turned up, reaching a new all-time intraday high today.
The Gann Quarterly Chart turned up today. That is very bullish for stock prices for the coming few months, as we mentioned last week. While the upturn in that chart is bullish for the coming weeks and months it does not necessarily mean we are going that much higher short term, by which we mean over the next few days. As we have stated to our subscribers, sometimes after this chart turns up, the Dow reaches a short-term high the same day or within one to three days. We may have seen that high today. After the coming correction runs its course the Dow will then turn back up in a much stronger rally to new highs. So today's upturn does not mean we are going much higher over the next few days. We would look for a short-term high between today and next Wednesday, and then the start of a brief correction which could last into the end of the month, and then the start of a major, explosive rise to new highs. That rally could last several months.
We have a short-term upside projection for the Dow calling for 11684 plus or minus 180 points intraday. |
