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File: C:\AOL30\CHARTS\BREAKOUT.GIF (13980 bytes)
DL Time (TCP/IP): < 1 minute
Congrats to those who called this up move.
The surge this morning through short term, and then longer term trendlines
has some of the ear marks of a breakout. I should know by now to ignore my
gut feelings entirely.
It think tomorrow and Friday are pretty important in establishing if we are
starting a new acceleration phase to the upside. As I'm sure others have
noticed, a valid trendline once crossed in an aggressive fashion will become
support for a further move to the upside. We need to put some distance
between ourselves and the longer term upper trendline fairly quickly, or we
run the risk of witnessing a false breakout.
There seem to be several indicators supporting all this, but there is one I
use that is a bit of a negative. It involves the action of GE. GE
invariably moves in lock step with the DOW. For the past two days however,
GE has been down, while the Dow and the rest have been moving up. This is
unusual, and GE is on the verge of breaking a lower trendline going back to
April. I hate fundamentals, but does anyone have a plausible reason as to
why GE is slipping?
PJLaird
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