GZ,
For the rally to continue, I believe that the other indexes need to participate and the market internals to improve more. The RUT performed nicely on THUR/FRID, but thats only 2 days. Keep in mind that most of indexes have NOT yet set HIGHER HIGHs, only a few so far such as the DOW,OEX. Even the SPX has not yet set a HIGHER HIGH. Of course if the rally continues they may, and I do suspect at some will, but some or many will still be below earlier important HIGHS.
Now if you are talking about TA, maybe Im wrong, but the most BASIC RULE/FUNDAMENTAL of TA is watching the development of HIGHER HIGHs/LOWs & LOWER HIGHs/LOWs and combinations thereof. I have not heard one technical analyst denounce this basic rule. At the same time Im not saying it is all inclusive either - NOTHING IS. But I have noticed that your TA does not address one of the most basic principles of TA. Just wondering.
Frankly, unless this rally does not spread out to other sectors and the the market internals do not continue to improve, and Im not talking about 1-2 days, then this rally may just be another BUBBLE.
Did you notice on Friday that the the DOW closed near its highs, but many of the indexes like the SPX/NAZ sold off about halfway from its intraday highs. Hey, it may not mean anything,or it may.
seeya |
