Let's not forget that the QQQQ's remain under the $35 resistance level, and the banks were not able to break out today despite this large percentage rise in the broad indices. The Dow Transports also remain under their highs of the week before last week. These resistance levels might still give way, but unless and until that happens the market remains on thin ice.
A lot of people have their eyes on the idea of a pullback to the 50-day moving average that forms the right shoulder of a bullish inverse head and shoulders pattern. That may happen. But the very fact that so many see it, makes me wonder if something else may be going on. This skeptical habit is something my late trading mentor taught me. Something else I haven't forgotten is that the late May time frame looks significant to me, based on the Fibonacci time calculations I posted here the weekend of March 7-8. I also ran some additional, preliminary Fibonacci time calculations based on the monthly charts, that now have me considering potential significant market levels (lows?) for September 2009 and June 2010. (These are based on running Fibonacci time extensions from the high to high, 2000-2007, and the low-to-high, 2002-2007.) If the inverse head and shoulders pattern looks like it is showing up, we'll play along, but we shouldn't forget that there can be other possibilities as well.

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