Posted
Apr 23 2008, 08:53 AM
by
Richard Schwartz
TECHNICAL VIEW. Wednesday, April 23rd, 2008
There’s still a bit of doubt whether we’ve now broken out of the wide and volatile trading range we’ve been in every since late January to the upside. And whether it will stick. At least in my mind. My reasoning for you chart lovers out there is that since we pushed out the bottom end of the wide range in March before bouncing back up into the range, why not the same at the top end? It’s not like the news is so good that Mr. Market (the consensus of institutional investors) have formed any big bullish opinion. Well, maybe they have. The Dow and Dow Transports both, important by Dow Theory tenets, pushed up and above the range … before the Dow retreated back into it yesterday. Schwartz View: One more, even slight, joint new high close by both would make me say the range has indeed been broken to the upside and lead me to say that’s an indication we’re due for a more substantial move up.
Filed under: Principles of the Stock Market, Richard Schwartz, Technical View, Charting, Bullish Signs, Dow Theory, Keys to the Market, Dow Transports, Day to Day Action, Higher Higher & Higher Lows, Portfolio Strategy, A Line, The Principle of Technical Analysis