Summary for Week Ending 4th November 2006
Its been a couple of weeks since the last report, and a lot appears to have happened, mostly in the forward direction.
Last few weeks...
Looking at the chart we can see that the market has maintained the strong trend, ever since going past the old high. Looking at the support lines we can also see that until the last week the trend has been intact with days in reverse not going past 3 days which is common when the trend in in this mood, Looking at the previous week we can see that the market has made it down to the depth of the previously largest decline in this movement, that being 27 points. Its gone past by 1 point but that's just quibbling. As it stands the market is at this point poised at an interesting level. According to Gann when a decline surpasses the dimension of the largest decline in any movement then we have a signal that the trend is in trouble. If we take the decline from the basing move (56 points) then we have some way to go).
Next Week...
As it stands the trend is still in place with the counter trend movement coming in at 5 days and 28 points. We don't have an outside reversal so the coming week will be interesting. If we are going to see more upside then we should get back to a new high within the 5 days we've seen in decline.
|
