Stock-Market-Observations

• WHAT’S HAPPENING?

Now that the rally is underway, where are we going (see last night’s blog for the speculative buy update)???

Below is a chart with an “idea” of a possible stopping point for this rally.  Of course if we are in 4th and 5th step up, we would make new highs.

I’ll count the steps on the way up and let you know what I think is happening.  If you made me choose right now, I would want to say that this is a rally in a downward correction.  BUT . . .  the SP 500 futures makes it look like this is a bigger step 2 up since April 10th (see second chart).  But I’ll worry about all of that another day.  Meanwhile, I’m going to enjoy the rally and make a couple of dollars.

I’m going to have minimum contact with the blog for the rest of this week.  Doesn’t mean I’m out of the loop, just means I won’t be talking much.  Got things to do, people to see, blah, blah, blah.

04-17-12 Nasdaq Composite 15 Minute Bars

The chart below shows the entire decline since April 2nd.  You can easily see that we might be starting a bigger step 2 up today.  Don’t forget the projection on page 3 of MY CHARTS , chart #40.5, which says we are going to the area of SP 500 1407.  We’ll see how that works out.

04-17-12 June SP 500 Futures 24 Minute Bars

Earlier I had stated the following:

• FUTURE SCENARIOS

(1) We will have a failed rally attempt at a new high and that will drive the nail into the short term coffin.

(2) We will have a token new high, which could be disregarded under certain circumstances.

(3) We will make a legitimate new high, which means we will have an extension for Very Short Step #4 and #5.  After 5th step up, we would have a significant correction.

(4) We will have a sideways pattern to break the uptrend since November.

MY CHARTS   This is the link to my charts on StockCharts.  Vote below and tell me how I should arrange the charts on page 1.

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This entry was posted on April 17, 2012 at 9:03 AM and is filed under UPDATE. You can subscribe via RSS 2.0 feed to this post's comments. You can comment below, or link to this permanent URL from your own site.