ajtj99's Market Pulse

[plexxus]

AJ as always your time and efforts are much appreciated and well may come to pass over time.

However, we continue to view the big picture from different sides of the fence thus our differing views in individual charts tends to make some sense.

I am taking my bullish stance from the lead of the Small/Mid Caps and the Transports the leaders off the 2002 lows.

As you can see here the move in the Russell 2000 has cleared any trendline resistance.

http://stockcharts.com/def/servlet/SC.web?c=$rut,uu[w,a]dhcayiay[d20030307,20061231][pb50!b200!f][vc...

Same story in the Mid Caps...

http://stockcharts.com/def/servlet/SC.web?c=$mid,uu[w,a]dhcayiay[d20030307,20061231][pb50!b200!f][vc...

Transports are also in a stealth bull move that can not be denied.

Also, per the Comp I'd suggest its not a rising wedge but rather a Cup/Handle Pattern that has a potential projection of about 3100.

http://stockcharts.com/def/servlet/SC.web?c=$compq,uu[w,a]dhcayiay[d20001007,20061231][pc50!c200!f][...

Note that volume on the clearance of our key 5 year 2328 resistance last month was the 2nd highest volume seen ever. I find that significant.

http://stockcharts.com/def/servlet/SC.web?c=$compq,uu[w,a]mhcayiay[d19990307,20061231][pb50!b200!i!f...

While I'm not "expecting" 3100 I am also not ruling that potential out either as that would only be a 50% retracement from the 2000 highs to the 2002 lows.

Bottom line if I see enough signs of topping at whatever level or juncture I'll adjust to that at the appropriate time as I am not fixed to any bullish or bearish posture. I'm currently seeing enough of the key groups/sectors act well or setup/breakout of long bases to suggest there is adequate support for this market to head higher over the near/mid term on balance. Also if your long term uptrendlines on the wedges that you've drawn play out that would be a major cause for concern no question.

Only the passage of time will tell how things play out. Again appreciate and enjoy your charts and insights.

Robb