Summary for Week Ending 17th February 2007
As I said last week, and the week before that, this trend has yet to display any inkling that it wishes to end. I will admit that things are very compressed again at the moment but we are still registering higher highs and higher lows, and that says it all.
This week the market shrugged off the bearishness of the previous Friday and started with a little dip to honour the decline and then began its march forwards again. Looking at the chart we can see that it came up against the minor parallel channel and then had a breather and this week will tell if we are to see a breakthrough.
There has been a lot in the press regarding a breakout looming, and I always think this is a bearish sign, as the media usually gets its very wrong right at the very top, so we'll just have to wait and see.
With the market compressing the way it has been, will only lead to greater pressure building up in the system, and if we do see a clear break then we may see it rocket away quickly, if only for a brief time.
As it stands at present, the market is saying that its prepared to go up, but very slowly and with no clear breaks or clearly defined trends. Whilst this is so, the rule of thumb is to expect more of the same until this personality shifts to display some other qualities.
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