Heinz and all,
Since mid-April, when the NAZ first started selling off the market really has gone nowhere. When one looks at the 3 major indices, the
DOW,NAZ,SPX and average them together they are flat.
Lets look at right now - the NAZ is down 21 points which is equal to about about -88 DOW points, while the DOW is up 57 and the S&P down 30 cents. THE MARKET IS GOING NOWHERE AND HAS NOT GONE ANYWHERE SINCE MID-APRIL.
Why am I making such a big issue about this? When we get to a top
there are 2 common reversal pattern, one takes the the inverted "V"
shape when the market hits a top and immediately sells off, and I believe that many were expecting that. The other is a topping process that takes time, as much as months. If one recalls, I and
a few others felt that the top arrived in mid-April and that it would be a topping-process before the market started selling off strongly. At that time I had projected the time frame of MAY 5-6, and latest around early June(memorial day) for the stronger selling to start. Now during this period of mid-April thru early MAY or JUNE the market should not set higher highs, and on an average it did not even thought the DOW did, but at the expense of the NAZ.
What we have since mid-APRIL is sideways trading in the form of money rotation. sideways trading is common for a topping process.
seeya |
