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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: skinowski who wrote (31077)	2/13/2002 8:40:38 PM
From: velociraptor_	Read Replies (3) \| Respond to of 209892

Yes, it can be a leading diagonal as well, so the coming pullback will be key. I can read the fine structure for the move up either way so I am not sure which it is yet. With daily indicators now just about overbought and the TRIN 5 at levels more overbought than they were on Dec 6 when the indexes had the high volume rally I don't favor the leading diagonal. Also, volume on the whole rally has been declining which favors the break down to at least the base of the wedge. If this is a leading diagonal, then I'll be bullish as hell because that implies a strong move up over the next few weeks with a minimum DOW target of 11,000 and possibly as high as 11,900. If the wave extends to 1.618 then the DOW will reach 13,300. I would hate to see what valuations are going to be like at those levels. Also, a move up to even the minimum 11,000 would imply we are going to see inflation start to kick into high gear, bonds are going to crash (long term yeilds will move to 7% or higher), precious metals and commodities will inflate in value (at this point they'll probably go up either way, anyway), and interest rates are going to start shooting up. I also agree on the decline in the Nasdaq as 3 waves so far, however, there may be something more complex developing so I am holding back on defining an exact count for now. We're at a critical point here. Either we're going to see a big decline in the coming weeks to put things back into perspective or there will be a total disconnect from any reason in the markets and we're going to shoot up.