Stock Market Analysis

Sunday, May 13, 2007

At The End Of The Rally?

The Dow has had a great run since the dragon tail formation (please read my post on 14 March) on 14 March and have gained more than 10% since. This is an amazing rally at a magnitude that I have not seen since 2003. However, despite all the good news that seems to hit the headlines daily, this rally looks like it has truly reached the end, or very very near the end. All ny technical indicators on all time scales are displaying weakness across the board, along with the Dow breaking off from it's staircase formation, tells me that the rally is about done. If the Dow goes into a decisive technical correction from this point to about 13000 points, then there is a great chance for it to rebound and continue the rally. If the Dow decides to change trend and move sideways, then the rally could truly be done. Let's watch and see what happens this week.

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