Tuesday, June 12, 2007

Point and Figure charts

Lets take a look at the point and figure charts shall we. The point and figure charts eliminate the noise and give one a clear view of what is actually going on in the market. Notice after moving straight up 12 & 14 boxes the Dow and the S&P have pulled back 3 boxes. Doesn't seem unusual to have a little consolidation after such a strong move to me. The Q's are even stronger. So far they haven't been able to even put in a 3 box reversal. I don't think the sky is falling just yet.