Monday, October 18, 2010

10/18/10 - NDX and INDU - A Pullback Coming?

Is a pull back coming? There's a good chance. A Crash? I'm still not to sure.

After a 5 month trading range from Apr-Sept, AAPL climbs 15% and that's after running up almost 300% after the March 09 low. I think a 6% giveback is not too much to ask.

It's obvious things can't run up forever without some type of pullback. So if we pulled back tomorrow and started minute [iv] down, I wouldn't be too surprised though the market still needs to prove that.

The charts below still tell me that things are bullish.

The INDU has now retraced just over 94% of the Apr decline. The odds that this is a minor 2 up in a Primary wave 3 down should be at the very bottom of one's count list.

It should be an alternative to the alternative to the alternative. Could it be the top of a B wave up following the Jul 2010 low? I give that more weight for sure.

Look at the NDX below. That's even more bullish.

The NDX has now climbed over two long term trendlines and backtested both successfully.
blog comments powered by Disqus