Summary for Week Ending 18th March 2006
Oil rallied and so did the market. Go Figure !?
Last week...
Last week I said that I thought the money was scared and it needed a good push either way to get out of these doldrums. Well we certainly got that this week. I also said that the market was down 7 days from the Feb 27 high and that there was more time left for the market to give us a rush to recovery within this 7 bar time frame, and we also managed to see the market scraping to new highs on the 5th day so all is good it appears.
So what's happening ?
The market appears to have shrugged off its complacency and has found new vigor in making it to new highs and I expect this to continue. On this weeks chart I have added the support line around the old historic highs and this should be crucial in supporting any further advances. I'm curious as to if we will see this line tested in the near future or if we will simply see the market take off from its current strong position. the mar 21 date is still on the chart but I'm not holding much hope for this date and I've added the April 11th as the next region of 90 days from the Jan 11 high. This will mark the 180 day from the Oct 2005 low from which this rally sprung from originally.
So where to...
Since we are going up I'm not going to fight this. We are close to range equality 44 points but I would expect a minor correction off this point if any.
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