What is clear is having waited so long for the market to roll over (basically spent most of 2007 waiting), I jumped too early on the bullish bandwagon this year.
The past 3-months have been good for bulls. Like in late 2006 there is a reasonable chance June will be another upward month. However, it is unusual to get sequence runs beyond 4 months. Look at the early 2006 decline, late 2006 advance, early 2007 advance and the late 2007/early 08 decline; all lasted around 4 months. What we are likely to see after June is a period of sideways trading until the next 3/4 month sequence kicks in.
June will likely be the last month I keep my 'Buy' call on the market.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
1 comments:
I agree that sounding off a cautious note for the coming months is right but for the time-being, the market will fluctuate between lame rallies and corrections.
Jeff
http://jeflin.net
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