Summary for Week Ending 14th April 2007
In the last report 2 weeks ago, I suggested that should the bullishness continue, that we should have bee at the old high within 2 weeks. Well, its now 2 weeks later and the market has failed to really get on with it.
Since the Low on Friday 3oth Mar, the market has managed to move forwards, but certainly without any vim that mat be expected after such a swift decline. As it stands the market has been rising for 21 trading days, after a decline in just 14 trading days and we are et to see clear air. What may be following is a period of compression, which would not be unexpected after such a long run upwards, but with most of the major markets already at new highs, it doesn't bode well for this market at the present.
Looking ahead, I still believe that the market has the potential to maintain its upwards drift ( and its certainly drifting). We are in the 5th wave of the return rally, with the 3 wave being considerably shorter that the first wave, so we are getting a signal of compression. Difficult to say what the week will bring.
|
