Hi BearShark,
I am certainly not saying that this high we see on Monday will be the FINAL top of this move. As stated in my early posts in January, multiple projections call for upwards of 10,000 before the final top is in. But even in such a radical move up like that from the January lows, a 10% correction or 2 along the way is certainly to be expected. To reference a chart that should provide a similar look to how the Dow daily chart will look in 3 or 4 months, look at the OSX (oil service sector) daily chart from last year. Look at that parabolic climb, and notice the number of 10 % corrections that occurred even after the chart had gone nearly vertical. It is not at all out of the ordinary for this to occur in the type of move we are seeing.
A further footnote: The projection method i used to determine the bottom of the 7/96 correction, the 4/97 correction, and the 10/97 correction, and also which happened to predict the bottom on the '90 correction and the '87 correction, is pointing to the 985 SPX (Dow 7800 area), assuming we see 1141 on the June S&P futures on Monday. Movements up slightly above or slightly below this number will only alter the projection slightly. I'll give the final number when the high is in for Monday.
Good Luck Bearshark, and I hope you live up to your name in the next 2 weeks. If not now, then I don't know when. :o)
David |
