Today was a rout for the bulls. The market gapped up and never looked back. Todays’s rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we’re destined to touch 2,000 on the NASDAQ.
At some point this rally’s gonna turn. What do you think will signal the correction being under way?
Tom,
I wish I could answer that. I’ve called so many false tops already.
Mike: take a look at this link: http://stockcharts.com/def/servlet/SC.web?c=%24vix
I know most folks have given up on tracking the vix but I think there’s definitely something happening here: the vix stopped setting new lows at the end of October… note how each of the lows is in an upward progression … the 50-day line is about flat and hasn’t turned upward yet, but something’s afoot … I noted it yesterday when when we got no end-of-session meltup, and when today’s end-of-session rally faded.
The minute you stop calling ‘em, that’s the top.
I think I got sucked into the Matrix. Went long yesterday at the clothes. On the for sure Thanksgiving Rally. I can’t help but follow the beautiful music coming from the pipe, as it plays its Thanksgiving lullabye. It’s all fun and games until you get to the cliff!
HOOAH!
I wish everybody here a very Happy Thanksgiving!