DOW all time high is not far away (11,750.28), as you all know unless you live in a cave. 100% projection August is 11,771.50 and it could be in the cards soon if we hold 11700 tomorrow. Don't underestimate the appeal of round numbers, though. DOW 11,800 would not surprise me (11,803 is 100% projection July). A notch in the bear camp however was the low volume and weak breadth of today's action. It's not a done deal yet, as they say.
The COMP closed the May gap and looks headed for 2289, 61.8% 2006 should all go well one more day for the bulls. But end of quarter days can be tricky and there could be a hit if funds choose to hedge ahead of the first week of October. I would view a failure of COMP to hold above 2272.70 on a 60 mn candle closing basis as the end of this rally, or at the very least a sign that a decent pullback is in the wings. Nasdaq overnight futures are up 4 as I type, and that is a good sign if it holds.
This entry was posted
on Thursday, September 28, 2006 at 3:23 PM.
