Stock-Market-Observations

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WHAT’S HAPPENING?

Today we broke through the prior highs of April 17th.  I am formalizing the buy signal, which was alluded to in yesterday’s update.

We could be forming one of those long wave channels where the rally keeps going with nothing more than 1-3 days of correction.

This rally is probably taking place because “THEY” know that the GDP numbers on Friday morning are going to be better than expected.  As usual the little guy will be the last to know.  If the GDP numbers are big, one of two things could happen on Friday:

• We get a big rally in the morning followed by a correction
• We get a big rally in the morning that is followed by a trend day (every hour is higher than the preceding hour).

The trend day will be a powerful signal that there is much more to come.

If the market accelerates, the upper channel lines in the charts below will be moved higher, contacting a prior peak or low.  It is actually too early to have good trend lines but these are the guess at the moment.

04-26-12 LARGE CAP INDEXES 15 MINUTE BARS

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This entry was posted on April 26, 2012 at 11:34 AM and is filed under SELL - BUY, 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.