Summary for Week Ending 5th February 2006
Again the news front isn't really throwing up anything worth taking note of, except perhaps the news surrounding Google earning the income of a small Sth American country and the stock getting hammered for it. I still cant figure out this obsession with earning estimates etc, but it was certainly good for the short sellers.
Lets look at the last week.
last week I said that I wasn't convinced with the rally that we had seen I was expecting the market to resume its decline this week..and it did. Apart from the slight blow on Monday taking it to the level of the previous swing high it managed 4 days down so far, and should have a little bit more to travel. We are getting close to the low of 25th Jan so expect some support. There isn't to much else to say here as the market has performed as forecast, and its always encouraging when this happens.
So where to....
Looking at this weeks chart we can see that time is running for this market to continue to do nothing and should a rally come in it should be explosive. I have mentioned in previous reports that all this congestion simply builds up energy in the system and this has to be expended. I've made a couple of adjustments to the time frame this week, taking into account that the first wave down took up 14 days of time, and if we project that forward from Mondays high, then we get Monday the 13th. This is only a summary idea at the moment, but it also displays a 21 day final run if the 7th March is indeed the final top. Again this is simply scenario building, but it does give us something to play with. This coming week, either we get the run up from Fridays low, or .... the market soaks up a little more time to take us into either Friday or the following Monday. I'm with the idea of time being soaked.
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