Summary for Week Ending 7th October 2006
The big news this week was the new high in the Dow. Its taken 208 weeks since the low in Oct 2002 and 351 weeks since the high in Jan 2000. Needless to say , its been a long time coming.
Last week...
The week the market has maintained the pattern of 2 days down and then a rally to take the market to a new high. Again this week the market rose in 1 day so its easy to see that the pressure is to the upside. Its also interesting that the market is managing to clear or rest upon the standard support levels so we are seeing a good solid trend. Of interest is we are now in a possible wave 9 which is not a common occurrence in these types of trends, as we usually see something like that when the market is compressing. As it stands at present, the market is continuing to expand, and as I said last week, I have no intention of standing in front of a moving train. When the train does stop and turn around, it should be signaled by a swing below standard support, and this would be followed by a lower swing high.
Next Week...
As far as pace is concerned, the market is accelerating slightly but not to the extent that I would save we are in a blow-off state. At least not yet, but if the angle of accumulation increases dramatically, then we all know that level of pace is not sustainable over the longer term. I'll just keep watching this go up.
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