Tuesday, December 16, 2008

Update Going into the Close...

The DOW is currently up 360 points, while the SPX is up 42 at the 910 level going into the close.

The VIX has broken down from its triangle, gold continues higher, bonds lower, and the dollar is crashing.

This does look like a wave 5 move off the bottom of 11/20. The NDX just generated a fresh buy signal on the daily and the DOW and SPX stochastic just turned higher as well.

The 30 and 60 minute stochastic are overbought, so be careful about getting too excited, although this is a good move up off the inverted H&S neckline – again, the upside target for that is about 1,000ish on the S&P, or almost 10,000 on the DOW.

I’ll look it over some more at the close, but this does look technically significant as it will be fundamentally as well. NOT a way to create real prosperity, IS a good way to create a false appearance of prosperity!