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UPDATE 03/26/07
STOCKS:
As
long as the lows made on the 14th are in
place, the odds favor another move up to new all
time highs in the DJIA.
Momentum remains strong and as shown in Barron’s,
the daily advance decline indicator has already gone
to new highs. This is a longer term positive and the
market should eventually follow to new highs later
this year.
There is support at 12,350 which should hold for
now. The next cycle low due in May could provide a
test of the previous lows, or could just be a normal
pullback from higher levels. It is still too early
to tell if the entire correction is complete from
12,800. A triangle could still form over the next
3-5 weeks, but would still result in a move to all
time highs this summer.
As
of March 20th, the
Institutions
had almost liquidated all of their net short
positions in the S&P 500, but still hadn’t moved net
long.
T
BONDS:
The
current correction should end this week and the next
up leg will take prices towards 118-120. There is
support between 111 and 111’20.
GOLD:
April gold is still unable to remain above $ 665 and
the commercials continue to hold large net short
positions.
I
will continue to follow the possible triangle
formation in the XAU which would result in one more
large advance in this index.
Regards and Good Luck,
Jay
Sanderson
TimingStock.com
To
see Jay's past Market Commentary and other products,
please click here
www.reliablestockcycles.com
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Commentary Archives
Long term cycle is bullish -
1/06/07
Next Cycle Low is due In March
-1/27/07
Market still positive -
2/05/07 | 
