Tuesday, December 9, 2008

Update - Chop, Chop!

Despite all the poor underlying fundamentals, the markets are going higher off their lows. The overbought condition has not been worked off fully yet, and thus I expect more chop for a little while longer.

The transports have come off their lows and are not weighing the market down as heavily as before. They are now down 2.8%.

The NDX is now up over 2%, and the RUT is up 1.7%. When these two lead, the market usually follows.

The action on the SPX and DOW formed a triangle that is worth about 30 S&P points, I believe it will be north. Thus the SPX is targeting about 940 in the short term which is coincidental with the top of the old triangle. It is also the upper Bollinger band:



The DOW is also targeting the top of its old triangle, about 9,460ish, but its upper Bollinger is before that, just over 9,100.

So, chop, chop, but working higher – I believe over today and some or all of tomorrow. Symmetry remains in tact for now.