The weekly charts are now showing a signicant change for the first time in a while. It is becoming clear that we are in a range bounded by last June's high, about 950, and this January's high, 1150, putting 1050 dead center and making that the "bull/bear" line in the sand. The death cross on the 10 week and 40 week moving averages is a much strongr indicator than the daily everages, and it looks like next week's charts will see them crossed.We also confirmed the head and shoulders on a weekly pattern, much stronger than a daly confirmation, and it looks like a test of 950 is inevitable.
The Dow industrials have also confirmed a head and shoulders, the neckline of which almost perfectly coincided with the mipoint of the June-January range. In hindsight, it's quite amazing how these patterns become so obvious after they are completed.
The Dow transports have not confirmed the break of the midpoint, but at the reate they are dropping, should do so early next week. However, they could also give a pretty good bounce off that midpoint. Until these confirm the break, I wouldn's want to be short here.
Just as I let the bonehead economists argue about whether we are going into another recession or not, or whether we actually came out of the first on or not, I will let the bonehead technicians argue about whether we are in a bear market or not. As Yoda O'Neil himself might say, let the market tell you all you need to know.
The new hgihs update mmight be a little later than usual.