Summary for Week Ending 14th July 2007
Finally the market managed to dance with the old high from 2000 and also managed to close near the highs. Looking for reasons for the markets rise is becoming a straining exercise at the present so it maybe best to just ignore any fundamentals and just watch the market continue going up.
The trend has now been in place for some time now, and although we have seen the occasional hiccup, we are still going along quite well. The angle of the trend has yet to develop into anything stronger that what we have been watching for the past few years, and this pace is agonisingly slow, and certainly not the kind of breakout/blowoff release of pressure we should be expecting to see. Perhaps the run to a new high will create a greater level of encouragement, seeing at the DJIA broke its 2000 highs some time ago. The NASDAQ is of course another story and it may be the next generation that will see the dizzy highs we saw 7 years ago. The reason for this is simple. the NASDAQ was a bubble, and bubbles are rare events. It usually takes a new generation, one that has not been tainted by the past, to make any real progress.
Back to the S&P.
We are approaching the 135 Calendar day mark and we will have to wait an see if we get any kind of reversal on or around this date. It must be remembered that we need the market to run into the date, that is we must see the market perform with above average strength and speed going into the date. Anything other and we can ignore it and start looking at the 180 day time frame, which I think may show more promise.
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