Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.
Smoked Bear
5 Comments
Essential Reading
This work is licensed under a Creative Commons Attribution - Noncommercial - No Derivative Works 3.0 License.
- Even if you don't have perfect credit, you may be eligible for a $500 payday loan. Apply today and receive cash advance by the next day, all via the Internet
At some point this rally's gonna turn. What do you think will signal the correction being under way?
Tom,
I wish I could answer that. I've called so many false tops already.
Mike: take a look at this link: http://stockcharts.com/def/servlet/SC.web?c=%24vix
I know most folks have given up on tracking the vix but I think there's definitely something happening here: the vix stopped setting new lows at the end of October... note how each of the lows is in an upward progression ... the 50-day line is about flat and hasn't turned upward yet, but something's afoot ... I noted it yesterday when when we got no end-of-session meltup, and when today's end-of-session rally faded.
The minute you stop calling 'em, that's the top.
I think I got sucked into the Matrix. Went long yesterday at the clothes. On the for sure Thanksgiving Rally. I can't help but follow the beautiful music coming from the pipe, as it plays its Thanksgiving lullabye. It's all fun and games until you get to the cliff!
HOOAH!
I wish everybody here a very Happy Thanksgiving!