Bear Mkt Rallies:
zealllc.com
Dennis:
Nice analysis...
A comparison of the 1998 Nasdaq low of 1357 and the 2001 low of 1387 shows the rising lows...
stockcharts.com[m,a]maclyymy[pc13!d20,2!c50!c100][vc60][iLb14!La12,26,9!Lk14!Lf!Lg!Lc20!Lp14,3,3!Ll14]
We have a massive long term head and shoulders formation with a big battle coming in the 2000 to 2100 area... A close above 2200 puts it above the 50 period MA... That would be very bullish...
The daily charts also confirm this area of overhead resistance...
stockcharts.com[m,a]daclyymy[pc13!d20,2!c50!c100][vc60][iLb14!La12,26,9!Lk14!Lf!Lg!Lc20!Lp14,3,3!Ll14]
In a Bull market you break through resistance... In a Bear market you are repelled by resistance...
With interest rates at multi year lows and oil prices much lower, we could see the market look ahead to better times... That happens when bad news is ignored... We've seen a lot of that lately... Also, P/E's tend to be higher during the economic trough in the recession... As earnings start to improve, the P/E's will slim down a bit... So, I'm closely watching Nasdaq 2000 to 2100 for my guidance...
Jim |
