A Great Day For The Bulls & Television

With about an hour to go in the trading day, the market battles back from a 110 point loss.  The Dow Jones is about even and the other indexes are off of their lows as well.  Even if we finish down 110, it’s a victory for the bulls.  A weak selloff is just what the doctor ordered if you’re bullish.  Very rarely does the market go up after such a huge day such as yesterday.   So, I’m monitoring this selloff and buying a little more on the dip today.  I found it most interesting that the market is battling back even with politicians on television!  Imagine that. 

Possible Head & Shoulders Forming?

In the day to day movements, we sometimes forget to just step back and look at the markets objectively.  So, I changed my bloomberg picture on the S&P 500 to a weekly chart.  And what I found was a possible bullish formation.  It’s called an upside down head and shoulders.  I’ve explained it in previous blog posts before, but essentially it’s a bullish set up where the market makes a low, then goes up and eventually makes a lower low.  The last leg is the right shoulder that isn’t as low as the previous low.  Confused yet?  Just look at the picture and you’ll see the formation that could be developing.

headandshouldersspy032409

If the pattern holds, that would mean we’re going much higher in the short run and eventually the rally would run out of gas.  After a brief pullback, we could see an even bigger run.  Just keep in mind that this is a weekly picture so this pattern may take a few more months to fully develop.  That may coincide with the economy getting better as well.

Television

I’ll be doing a few television hits tomorrow.  Here’s the schedule below:

Bloomberg – 6:10 a.m. (CST)
Fox Business – 8:10 a.m. & 8:30 a.m. (CST)
CNBC Asia – 6:10 p.m.thru 6:30 p.m. (CST)

This post published at www.karleggerss.com

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2 Responses to “A Great Day For The Bulls & Television”


  1. 1 lev March 24, 2009 at 8:54 pm

    Yeah, but it isn’t also consistent with lower lows and lower highs going back some many months? Namely, up a bunch now, then down a whole lot more.

    • 2 keggerss March 24, 2009 at 9:43 pm

      You’re exactly correct. Longer term I think we could (emphasis on could) be setting up for the upside down head and shoulders but on a daily chart we’re at a fork in the road. Either we pause like today and then blast through the top of the downtrend we’ve been in since October or we break out and go higher after a brief pause. I believe the downtrend will be broken this time. However, we have to be flexible and not have any bias as to either direction.


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