Beeble,
We ran up 600 points and many are getting bullish.
Many forget that this rebound is only about 50% of the last decline(top of this decline at 8689 on 8/25). If we use Jerry Favors figures the average rebound is 62% and we are still below that. Also keep in mind that after the OCT crash the rebound was over 70% in 6 days. Yes the OCT dump was only a correction in a BULL market, but isnt that what the BULLs are calling for now, that we are just in a large correction.
Dont get me wrong, since I am not saying the BIG KAHUNA, just a trading range.
We will get a pullback sooner or later, and then lets see the strength of that pullback. If the forthcoming pullback does not even get close to 7400 before reversing back up, then that would be a technical signal of mid-term strength.
I guess its natural, the market runs up and the BULLS come out and when the market runs downward the BEARS come out. When the bullish tone gets too strong then its the time to sell, and when the bearish tone gets too strong then its the time to buy.
I use my broker as a contrarian indicator, and hes a good one for the last 6 months. He's bullish now, so must be a time to sell gggggggggggggggggggggggggggggggggggg
Seeya |
