ajtj99's Market Pulse

[Jerry Olson]

evening AJ et all

I have to disagree with all of you about the current market direction.

We've had major new bullish percent reversals up off deeply oversold levels, in fact historical levels that always created a much larger rally then anyone can vizulize.

i think we could go to new 52 week highs between July & August. The SPX BP the NYSE BP the NDX BP the OPTI BP and all the 4 short term internal indicators i watch are all in sync heading a lot higher if you ask me.

the one weak area is Tech, and the semis but they too will follow along albeit much more slowly.

The RUT is going all the way back to it's 52 week highs after a nice buy the dip pullback.

I had shown Tea the chart of the SPX BP last week or so. It not only held important 3 year lows, it just reversed back up here. The weekly up trend line was not volilated and held well, so together this is powerful medicine for a major shock and awe rally.

It's not expected at all, so the power of the move will be a big surprise. I would be buying every single dip thru this next 2-4 weeks and then reassess ahead of the FED.

If the eco reports starting with the employment number Friday and then CPI PPI and PCE even come in even, at say 0.2% core what with the demise of the housing market the FED must stop and will stop.

What is very interestung to me is just this week the BP REAL(real estate sector) just turn positive.

Oil will fly higher but we have already danced to that tune a long time ago.

all and all i would suggest a major rally is afoot...

good luck

jerry