Tuesday, December 04, 2007
I'm Bullish part two
Ok, here is the magic. The triangle I thought was a possibility and is looking likely as long as wave C, 12,796 on November 26th, holds. We can take that level out and still be in a triangle or a larger flat correction. What is unlikely at this point is that the high of October 11th, labeled wave B, is the big top and we are about to crash. The triangle I outlined is not a prediction of exactly how it will turn out but a simple drawing to give you an idea of what to expect. (Of course, if it does work out I will delete the last sentence.)
So I am expecting a sideways market into next year then a rally over 15,000. Probably more but we will have to wait and see how this unfolds. A triangle is usually the ending correction of a move and I expect this to signal the end of the bull market since 2003. But I am getting ahead of myself. I will add more on the extent and duration of the triangle as it unfolds. Just keep an eye on 12,796 and 12,500, they must hold.
All this is really interesting because the news I am getting is terribly negative as in its always darkest before the dawn. More on that later, also.