Stock Market Analysis

Sunday, April 29, 2007

Strongest Wave Of Bullishness Since 2003!

option trading The Dow surged another 1.23% in total last week and blew the historically important 13000 level no matter what the economic numbers of oil numbers said or seemed to say. In fact, the Dow has gained an astonishing 4% over the last 2 weeks! In fact, the bullish strength and behavior is so strong that I am certain I have not seen something like this since the great rally of 2003! This bullish wave started way back in July 2006 and lasted all the way till now with a healthy and classic intermediate correction in between, bouncing nicely off the Dow's weekly 30MA line. Right now, the Dow's weekly stochastics has entered the overbought region but I do not think that is going to slow it down as the Dow is all used to rising in the overbought region. Looking back, the Dow's weekly stochastics entered the overbought region last year in August and stayed overbought and bullish untill the 27 Feb correction. Right now, the Dow continues to trace the path of the "StairCase Formation" which I mentioned last Friday and all short term indicators are screaming for a pullback. If I do not see another 1% or so rise within these 2 days, then I would go delta neutral in preparation for a slight pullback. If a pullback really do happen, I reckon it will test the 13000 level.

Technical Chart By Worden Brothers TC2007 Charting Software
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