Tuesday, June 05, 2007
The Next Step
First off, I put up these charts on May 24th with every intention of posting them but babies have a way of changing your priorities.
This first graph is a continuation of the chart I first posted on May 8th. As you can see we broke out of the trendlines so it is time to consider what pattern we are in and whether we are in for a change in trend.
This is an abortive attempt to find a new trendline. No luck.
So I go back to the start and establish new trendlines off the top and bottom of the high and low which kicked off the big uptrend from a low of Dow 11940. Why am I doing this now? Two reasons, I had some time and I noticed that interest rates have been creeping up. I am surprised to see interest rates rise in what is supposed to be a weak economy. So events are developing which will let us know whether the trend will stay up for the stock market or not. More later, baby permitting.