The Raging Bulls
Two weeks ago, we shared with readers a perception that equity markets
were bullish like
no tomorrow. That general assessment has held course thus far. However,
intermediate level timing models are suggesting that equity markets may be
fast approaching a juncture of pivotal import. If so, many broad market indices
will soon elect one of three critical paths in the days and weeks ahead.
Our continued diligence in monitoring minor degree trends, together with
intra-day price structures; enables us to anticipate which of these critical
paths each market is in the process of adopting.
Despite such imminent prospects, the recent buying-panic in select indices
may well persist for much longer than one might assume. Once the surge abates,
rather than a sharp decline, Act-II may bring with it a sideways levitation,
serving to work off extreme overbought conditions, and perhaps introduce prospects
for a summer consolidation. In either case, it is advisable that one stay tuned
for the new fall season.
NEAR TERM OUTLOOK for the week ending May 18, 2007
NEAR TERM OUTLOOK for the week ending May 18, 2007
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Author: Joseph Russo
Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology
Joseph Russo, presently the chief editor and analyst for Elliott Wave Technology, has been studying Elliott Wave Theory, and the Technical Analysis of Financial Markets since 1991 and currently maintains active member status in the "Market Technicians Association." Joe continues to expand his body of knowledge through the MTA's accredited CMT program. Having passed the Level I examination in November of 2004, Joe is now preparing to begin study for his Level II exams. Upon successful completion of an exhaustive level III examination he will have earned the industries highly regarded designation of Chartered Market Technician.
Copyright © 2006-2012 Joseph Russo
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