Equities are right at resistance, especially NDX/QQQQ. We "should" pull back soon and retest that breakout area that served as resistance in September. However, it's important to keep in mind the number of bearish bets out which provide a floor for the markets. My guess is that once we get near the end of October, those bearish positons will lighten up as everyone expects the usual end of year run-up. That could be when the real danger starts. We've had quite a long and steep rally since the July lows and bulls are pushing the enevelope. Just remember that the markets can remain irrational longer than you can remain solvent.
This entry was posted
on Sunday, October 08, 2006 at 11:13 AM.
