Dammit, Shack. . .you're supposed to answer those questions, not pose 'em!
OK. . . let me take a crack at this.
I don't know when the pullback stops (or starts) but I would think that if this is a real rally, then the pullback won't be too strong. that whole 8950-9100 area on the Dow has spots to work as support due to prior resistance AND there will likely be fib retraces in there, depending on how high we go and what breakout spot you wanna use. We've already crawled through a lot of resistance on the way up here. . . we're somewhat extended (as 12% rallies will do). . . but I don't profess to know. Personally, I think it would take some negative news to derail the rally quickly and cause a retest soon. The only negative I see on the Dow is that GE has run up quite a bit and seems, well, heavy to use Allan's phrase. Also, Shack, did you see GE finishing a correction up today?
I would think that the 1620ish area could stop the Naz (old April low and 1629 the WTC gap). Or maybe 1660 (which would be a 38% retrace of the 2103 Aug top to the 1387 Sept bottom AND 1669 a WTC gap fill). And actually, 1600 mighta been resistance, too. I think we closed off from the high enough that we won't gap into the gap, so maybe we'll see what happens there tomorrow? (Or maybe we sell off from the get go. Or maybe neither.)
BTW, the Freepish Contra Indicator continues to work as, despite me throwing out cautionary tales about April, I did buy some Dow puts before the Fed meeting. Sigh.
the freep |
