Paul,
The charts look bearish to me - broken rising wedges everywhere, and those wedges formed in much lower volume than the trip down - but a lot of good technicians are looking for another leg up. October 11 is probably the date to watch here, although some have tomorrow as a short-term low.
There is, of course, the certainty that other terrorist attacks will now be attempted, but if we capture or kill bin Laden, you could probably buy with both hands, IMO.
Yes, the Fed has definitely been propping this up, and the internals on this rally have been weaker than any major bottom of the last 35 years, per John Roque, so everything looks to me like a bear rally. But who knows, maybe one of these days the Fed will succeed. Friday's action looked bearish to me, a paint job along broken support.
Best,
Paul |
