Absolutely no question in my mind the markets RUT, SPX, DOW and all top 100 stocks and even some classy minute ones are going higher and much higher. Any time there is a drop a pull back or a massive one day hit I will use that to go long. The charts are screamingly bullish.
SPX opened slighly higher and never looked back. It did a HH and HL and closed up 15 points. In two days we are up a whopping 41 points. Tech was up raw materials was up gold was up Oil was up. Xmas is here.
The chart on the left is spx on the hourly. There is a lot of color and detail on the charts. Basically there are three co-joined channels in the chart. Wave one lasted for 31 (186 hours) and covered 2 sections. Wave 2 was 13 days and covered 2 section. Wave 3 was 60 days and covered 3 sections. Wave 4 just finished slightly over 1 section and 13 days. Now in 5 . I believe it will be 30 trading days and takes to 1st week of January and will cover 2 squares and SPX should top around 1280.
The chart on the left is TNA daily. It has busted above the mid point of the narrow channel and has recovered more than 75% of its decline from 72.2 to 31.5. I will play the shorts when it hits the top of the channel and go long at the bottom of the channel or median line. TNA seems to make a second attempt from around the median. If it goes out of the top channel I will just wait for it to re enter the channel before I short. This looks bullish.
Banks joined in the dance in a big way today. The chart on left FAS daily. IMO it is time to buy the banks. They have spent nearly 3 months at the bottom. They made an explosive move to the upside today and looking at the amount of money the FED put in to shore up our system the money needed by the European trouble spots are minuscule. I am not expecting a major bad news to break out in the banking sector. When banks are going up it is time to buy.
Lastly I have FAZ on the left. It was in a nice narrow channel to break the top but it didn't . It has broken down and this precipitous drop IMO will take FAZ to around 8.80.
To the extent these markets can be forecasted they are looking very bullish.
Mainly if this is near the end of 1 what follows would be a 2 and then I can't wait for the 3 of P3 to the upside whenever that is. There is a small negative operational technical sign that has very good odds on the markets losing steam some time during the day tomorrow. It is from the way RUT closed today. Like I said in the beginning a good pull back I am jumping in.
Once again thanks for reading my blog and offering your encouragement.