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.