Summary for Week Ending 24th June 2006
Last week...
The quiet time I've been talking about appeared this week with little to talk about. The market seems to be treading water at present still absorbing the events of the previous weeks and perhaps catching its breathe. With this is mind there is little to discuss whilst things are like this and I'd be expecting the coming week to be perhaps a little higher but more of the same.
Where to ?
From a technical perspective we are in a resting phase after the big fall from the May high. If indeed we are seeing the start of a period of extended bearishness then (in a perfect arrangement) we should see a rally to a lower top and then a decline and this rally may be fairly confused as the initial decline was well defined ( using Elliot's rule of alternation). If this scenario is correct then we are in for more of the same which means that an increase in volatility and a lessening in the markets inclination to trend strongly. Worst case is that the current decline is not over and we start heading south again, however I don't have this as a high probability .
|
