Monday, July 2, 2007

Is the bull back?

I noted last week to subscribers that the Dow appeared to be coiling for a powerful move. Of course we never know whether the move will be up or down. I speculated that the move would have better odds of being up since the COT reports have been so bullish lately. Well we got the answer to our question today. Up it is. If the markets can close above the reaction high then we will complete the 1-2-3 correction and have confirmation that the trend hasn't changed. The double top theory is starting to look a bit shaky. I noted last month that the double top theory didn't really fit the norm for this bull.