Pezz... this is a rally..
But the fact that we made a new yearly low indicates that we might need to test that low once again.
A lot of damage has been done, but we were able to penetrate the 3,380 level (which I indicated on another post to be of importance to reverse this downtrend).
Message 14603820
It is unsure that the violation we saw yesterday was a test of 3,040 support or a confirmation (minus a few points). But we did rally above what is required and on heavy volume.
However, it is likely that we will revisit this area again and retest before the end of the year according to another of my "gurus".
However, in the interim this particular analyst (who is also quite accurate in his predictions) say we should see a rally that may have legs to 4,200 before the end of the year despite the fact that we're likely to revisit these lows again.
And by the weekly chart, this should be born out (minus a blow-up in the mid-east which should be negated by the UN "investigation" into alleged Israeli abusese)...
siliconinvestor.com
That will be the resistance point and until that channel top is penetrated to the upside on substantial volume, the next leg down should be 2,380 or so... again.. probably by the end of the year.
Btw, the reason for this is that there will be quite a bit of resistance on the upside from people trying to "break even", and quite a bit more tax loss selling until the end of the year.
We may see a rally carry over into the new tax year, but the trend remains downward until we see 4,200-4,300 penetrated on volume.
Regards,
Ron |
