Friday, September 25, 2009

Market summary for week ending Sept. 26th

It has been a while since I posted about the market. The reason for this is that my outlook remains much of the same. It looks to me that we are hitting the glass ceiling on the Dow and S&P 500, as both Indexes have pulled back slightly the past 4 days. Does this mean we are just going to go down every day? No. I said we won't go and stay over 10,000 on the Dow before we have polled back enough. I think we can still go back to 7,800-8,000 range, as I have said consistently on my Blog.

We have not broken the uptrend line as you can see on the attached chart below. I have drawn 2 Blue lines showing the range of this rise. I would like to see it break below the lower line soon, as that would confirm a correction is occurring and we should then go lower. I do not think we can have a Bull market rally until we do. I have no crystal ball on when this will occur as the market could go sideways without a breakout to the upside. That would mean we would stay below 10,000 but just not drop. No one I respect believes this rally is for real, but that may be why it continues. The market likes to make everyone wrong. :)


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