Rocketing Higher, But Is Stage One Burning Out?

Posted: under Predictions, Stocks.

Today’s huge 7% rally made believers out of many bears, and the scramble to cover shorts no doubt helped the bulls propel the market higher. The question becomes, are we near the top of the first rally wave, or are we already in wave 3 with a lot more immediate upside to go? There are several spirals aligned today either exact or within a day of previous highs/lows so I slightly favor a consolidation here, but I think the rally will go much higher medium term (weeks or months).
Short/Medium Term Spirals For S&P 500, March 23rd, 2009 - Click To Enlarge

Short/Medium Term Spirals For S&P500, March 23rd, 2009 – Click Chart To Enlarge

Comments (0) Mar 23 2009