This is the kind of goofy projection that I usually can’t stomach reading somewhere else, but since I’ve become so utterly despondent and disillusioned, I might as well: if the range established by the basing pattern truly does express itself in a new phase of the bull market, the Dow Jones Composite would extend to about 7400:
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Allow me to start off by sharing a comment posted on ZeroHedge this afternoon which must be the greatest comment ever made over there. It’s a lot of text, I know, but it’s spot-on.
No drinks. No bear fun. Just happy bulls. Anyway, I’m off to the airport. If you see someone jumping out the hatch exit once we’re airborne, wave hello.
Well the bears tested the daily middle band a third time yesterday and closed above it again, and on the decent NPF number this morning we have a marginal new high on SPX at 2181.80 at the time of writing. So what now?
Well it’s a cycle trend day today and it’s possible that SPX is going to trend up today. If so I’m not expecting bulls to sustain much trade over 2200, and if that area is tested then it will be a compelling short entry area. If that area is to be tested then the best shot for doing that would be today, on a trend up, and we may still see that, if the tape doesn’t freeze into near-immobility as it has been doing every other afternoon recently.
You can see on the daily chart below that the daily bands are now very compressed. We should see a powerful move soon and on the weekly band punch stats that move should be down, with the obvious target being rising support from the February low, currently at 2045. SPX daily chart: