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UPDATE 06/24
STOCKS:
Last
week’s update indicated that the Dow needed to stay
above 13,480 to maintain a bullish outlook. That
level was broken twice last week,with Fridays
decline taking the Dow down to 13,360. I have been
bullish this year, but am going neutral for now.
The
Dow appears headed back to test the early June lows
at 13,250. There is also minor support at 13,200.
The lower Bollinger band on the daily chart is also
around 13,250.
If
the Dow is able to reverse higher on Monday and
stays above the prior June lows, then there will
still be an opportunity for one last rally to new
highs.
Using Elliott wave, there is a clear 5 wave advance
(5 waves complete a bull move.) from the October
2005 low and a larger 5 wave pattern is complete
from the October 2002 lows.
A
minimum retracement of the advance from the March
’07 low to the June highs would come in at 13,000.
A
minimum retracement of the October 2005 low to the
June ’07 high would be 12,350.
I
will become more bearish on a break below 13,200.
BONDS:
I
would expect the September bonds to reach 108 this
week. It looks like a low may be in place for now.
Momentum indicators are starting to point to higher
prices in the near future
GOLD:
There is nothing new to add to this sideways market.
Both gold and the XAU are right at the levels seen
in January of 2006.
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 | 
