ajtj99's Market Pulse

[ajtj99]

Personally, I believe the move up could be 70% over with, so in my opinion, an entry here must be watched closely every day.

I believe this market may be following a pattern similar to what we saw in summer 2002, where we had a 3-week move up, then a 7-week drop to re-test the July lows, slightly exceeding them in the process on most indices. After that we had still another re-test of the lows in March 2003 after a ramp into the end of 2002.

In a meltdown we could drop to 1050 SPX, although it may be more reasonable to think 1150 may be all we get.

A better proxy may be the NYA 2000 highs of 7202 for a test area, with the rising support through the 1982 low and the 2003 low around 7500 likely the more important area to watch if we breach the July lows.