Summary for Week Ending 13th October 2007
It appears that there is no real news that will knock the socks out of the bulls, and this was in evidence again this week. Whilst there has been some consolidation of most interest to me was a BIG outside day on Thursday. On the chart this looks a little exhaustive and the following week or two may bear this out.
Following on from such an impressive rise after an equally impressive fall, we would not be unmistaken to expect some sort of congestion its just that its ben a long time coming. I was certainly expecting nervousness after the decline, but this was not really in evidence after we had the volume blowout that saw the end of the decline. the march upwards has of course been very impressive and we have made it to new highs, something I certainly wasn't expecting. This gives rise to the idea that perhaps all the players left are just bulls and are not prepared for a bad time should it come. All those who were wiped out in the 2000 tech wreck are unlikely to be playing in this field, as once burned its twice shy, so the punters can be expected to be newish players who believe they have found the fountain of wealth. In a longer term this is dangerous as the fall, when it comes, will be even more dramatic.
Looking ahead, I think we'll see something come of the Outside day and we may see the market take a rest this week. The obvious level of support is 1507 low on 25th Sept.
the worst case is of course another false break, but its unlikely that you will see a pattern repeat so close to one another.
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