Let me spell it out more clearly: The melt-up I am referring to are the new highs in the near term broad trend of the market I see dead ahead from last nights rydex update:
...We nailed the SPX bottom 1,080, and I believe we will be off to the races tomorrow or shortly thereafter. I would like SPX 1,118 close out tomorrow - latest by Friday. Huge overhead resistance at the 50 day MA SPX 1,143 (62% Fibonacci retrace)and major resistance right above the 200 day MA SPX 1,167 at the SPX 1,175 area. I believe we are going to take these levels out on our way to intraday highs SPX 1,205 - 1,215 level (Aug 3 and 7, 2001) into the end of this bull cycle Feb 8 (+/- 1 day). Then back down. I am extremely encoraged by BKX action which did not come near 780 and closed back up within striking distance of the 50 and 200 day MA's. Once BKX 870 is out, BKX 900-910 is finally within reach. SOX lows are nowhere near SOX 500 critical support and closed above both the 50 and 200 day MA'.s Now I see this run to SOX assault to 600 on the docket within the next few trading days eventually to SOX 650. COMP 2,180 - 2,220 intraday highs on the docket and NDX 1,820 - 1,850 in this run...
My caveat to this melt-up is this... another external event that cast a pall over the market (U.S journalist hostage situation turns grave... GATA judge rules in favor of plaintiff and formal inquiries into gold manipulation begin etc..)
***********
I see the glass half full right now... you see it another way.
Best Regards, J.T. |
