The markets have responded to the
early week signals to rally and the question now is What's next?
I use the Russell as the best
representation of the total market and on a weekly chart it achieved all the
correction we could expect and actually has given a buy signal this week. The
DOW and NASDAQ have both reversed at levels that suggest the bull is not dead.
The S&P did not quite reach its expected correction level and also has
yielded an impressive reversal to the up side.
On the daily charts the S&P ,
DJIA and Russell all have near impulse dates tomorrow so I expect this rally to
end tomorrow. The level of the price decline will tell us more about the longer
term picture. Next week the date to watch is 8/15.
Pivot Research & Trading Co.