LG,
The technicals are starting to have a more positive tone to them, which is a good thing, but will it continue.
I still feel that we are still in a trading range, just dont have a good idea of the range yet. Recently calling for the range of 8400/8500-7700/7800.
There were some slight negatives on Friday, which are probably only signals of short-term weakness(nothing dramatic), such as the divergence of the NAZ and SPX from the DOW. However the RUT was up even more than the DOW on a percentage basis which is good.
If we do not continue up, but start small oscillations, then that should be a topping out process, and some sort of pullback should start next week, probably towards the middle/end of the week. I dont see a dramatic pullback, just one thats technical in nature, say a few hundred points, of course it could get worse.
According to statistics, the average rebound from a major pullback is 62%. The DOW regained about 50% so far, so we are in that range now.
seeya |
