AI
Wednesday, May 03, 2006 8:23:45 PM
The techs have reversal written all over them. Uncharacteristically, they have warmed the bench while all other indices have been hitting multi-year highs. Those old, stodgy boring stocks in the Dow are just about 300 points or so short of a blue-sky breakout, and the techs just sit and watch? That can't last much longer. When money rotates into the techs, it's gonna do so with a vengeance. Actually, there's already a lot of evidence of quiet, methodical accumulation. We both know what happens when the big boys finish filling up their tanks.
Accumulation volume has really built up now, the market must react. I think that will be tomorrow, and I think we'll see a strong reaction.
No technical buy signals yet, but the market is very oversold.
Also... look at what happened on prior occasions when we had a series of narrow range days after a bit of a downtrend. And there were typically long, bearish-looking candles at what proved to be the short-term bottoms. This is a recurring pattern:
Accumulation volume has really built up now, the market must react. I think that will be tomorrow, and I think we'll see a strong reaction.
No technical buy signals yet, but the market is very oversold.
Also... look at what happened on prior occasions when we had a series of narrow range days after a bit of a downtrend. And there were typically long, bearish-looking candles at what proved to be the short-term bottoms. This is a recurring pattern:
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