By Jason Haver Jan 11, 2013 10:30 am
There’s still nothing in the charts that’s screaming “sell!” When looking at a long-term chart of the S&P 500 (INDEXSP:.INX ), we can see obvious similarities between the current pattern and the last two rallies. While the market always reserves the right to create confusion or to have a pattern fail, the present pattern is quite bullish, and a trip into the mid-to-high 1500s would be an entirely reasonable result.
Click to enlarge
Zooming in a bit on the above chart, one can see the similarities between the current wave and the intermediate bottom which formed in November/December 2011. The resultant rally defied gravity, and ran right through a number of reliable “topping” signals. The present rally has similar potential; the difference is that the present rally falls in the third-wave position at higher degree, and that suggests it should actually be faster and stronger than the previous wave.
Post a Comment