Summary for Week Ending 7th July 2007
The past week we saw a small recovery from the 56 point bounce zone. We had a day off mid week but this didn't seem to have any impact on sentiment with the market continuing to move along on its merry way. Looking backwards in time we have seen some big volume days on the downside run but this has not had any real impact either. Of concern I suppose will be the perseverance of the bears, whom I am assuming are an ever thinning rank. the story goes that the market is not at its high until the last bear finally becomes a bull and I dont think we are there yet.
Looking at the pattern of the trend so far we are still looking at continued sideways movement, until we see some real movement to a new high. So far the market has been in bear phase for 26 calendar days from high to low and we are now starting to see the market climbing out of this phase for 6 days and approaching the old high. If this is the final corrective phase then the final run upwards will be strong and fast. Internationally markets has already resumed the bullishness which is indicative of just how much money is out there to play with.
Timing is way too difficult at this stage in proceedings and we are close to the old high going back to 2000. Since we had a little trip just prior to this market we may see the market blast through this level with little more than a murmur. We'll wait and see. Keep looking at Oil which seems to be making another run, due apparently to some strife somewhere in the world. As with all markets, any reason will do! Ignore the cause and simply follow the facts and the fact is it appears to be rising. As mentioned last week, we should be seeing an impact on this added expense soon.
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