INDEX UPDATE
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There is really no change to my orignal position that the TOP in the DOW would arrive WED,THUR,FRI of this week. It actually arrive on TUE when the DOW got to 8652 intraday. Some may think that is strange since the DOW has not had a negative close since then. Another funny thing is that the DOW got as low as 8422 yesterday which is a 230 point drop off of the 8652 peak, and keep in mind it was done without a negative close.
Untill 8652(8702) is broken to the upside, this TOPPING OUT/DOWNSWING is still in process. Please keep in mind that I had previously indicated that this week would be oscillating up and down, which appears to be the case so far.
If WEDs high(8561) holds today, I feel that the downswing will intensify early next week(MON/TUE), but if the DOW breaks 8561 significantly, then that would be a clue that the market could bounce back up to the 8650 range next week, and if 8650 holds then it would be a DOUBLE TOP. If such happens it would just prolong this topping out process.
I do feel that that the forthcoming pullback should be weak, and the strong supports are at the 8300 and 8000-8100 ranges.
I do feel that, unless 8000 is broken to the downside(doubt it), that the bottom of the forth coming dip is a good buying opportunity. I am also seeing a possibility of a strong upsurge coming towards the end of NOV/DEC.
I am actually getting a little concern that the market will surge too much. Many will call me nuts, but I do feel that tpp strong of a surge may not be that healthy for the market, since it could be creating another BUBBLE.
Regardless I will be going long in NOV.
Seeya |
