>>>I repeat, CAN NOT, rise at 30% annually for ever<<<
Arik, thats true, but finding the top has been highly elusive and telling when it will stop rising is the question.
Anyway, if you look at charts like P&G, Xerox, Raytheon, Lockheed-Martin, JC Penneys, Goodyear Tire, Sears (i could list hundreds of em) we have already had a crash, with many of these stocks 50-80% off their highs.
The A/D line has a clear ABC move down from the 1998 top, and i believe it has bottomed, maybe i'll do a wave count on the chart and show you.
207.61.23.98
The XAl has the same ABC corrective pattern, with a spread double bottom.
Lately, I've been thinking that the 1998 bottom was a 24 year cycle bottom, complete with a presidential crisis.
If we can continue this rally on improving breadth and get the McCllelan Oscillator above 250, I believe that this market could go much higher, with a broad based rally.
The blast out of the hole on the spx last week broke the downtrendline on a breakaway gap and 90+% up volume and breadth.
This could be just like 1994, with a stealth bear market.
Sherm McCllelan has a Dow 30 summation index and it hit a low level commensurate with any bear market in the last 30 years.
The only thing that has me questioning this is the extreme bullish readings on put/call ratios and rydex and the high amount of margin.
It is possible that this will unwind as a topping of the nasdaq and money flowing into the broader market.
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