Thursday, October 6, 2011
We Bottomed
Not too helpful when we've already run up 90 points off the Tuesday low. But all the signs are there that we're going to grind higher for the rest of the month. We got extremes in sentiment readings, Europe is outperforming, and we V bottomed without turning back for the last 90 points. It was a fake breakdown below 1100 and then a rip higher. That usually only happens at intermediate term bottoms. It isn't 100% guaranteed, but probably at least 80%. I would look to buy any pullback next week as we'll probably keep going higher. There is some resistance at 1174. I expect a gap up on a strong nonfarm payrolls number tomorrow.
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5 comments:
Upside today on relatively low volume. Can't really see the market going a lot higher soon. Payrolls will most probably be good enough to keep it from going a lot lower (i.e. not strong). But after such a quick runup you'd expect profit taking...soon.
It appears the can has been successfully kicked a bit further down the road.
back in a range. the meat of the move up is done now. suddenly everyone is talking bull market again. we've done this bipolar thing 5x now.
remember in bear markets people always talk bottoms bottoms. in bull markets people always taking tops tops tops
This one feels a lot different than the last 4 times we've rallied big off a low. We haven't had that big rip higher on one day, we've gone up about 2% a day for 3 straight days, like climbing a wall of worry. Also, Russell 2000 has been very strong, meaning breadth has been strong. I expect a rally up to as high as 1185 before we get a pullback late next week down to about 1130.
oh MO so we are not going down any more now - this is the rally until xmas? No break down to 1040 then?
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