Despite all the froth and fury, and mantras of doom and gloom, according to Dow theory, the bull market continues. Should interest rates fall on Tuesday it could give new impetus to the upward movement. However, if the Fed disappoints, there could be significant carnage but maybe not enough to change the overall macro positive trend in the transports and the industrials. If the technical position confirms this any pullback could provide a wonderful buying opportunity.

The bull trend in the S & P, which has just emerged from birth pangs, may suffer, and the position of the trend will need careful analysis, moving forward, in the event of technical stress.

The NASDAQ looks very interesting. It is in strong bear recovery mode. Should the Q's break decisively through the 50 level they could very quickly move significantly upward, particularly if interest rates begin falling. The risk/reward ratio here makes for a compelling investment opportunity. Technically look for a bullish engulfing candlestick on high volume to confirm the market agrees.

Summary

Dow: Bull Market

S&P: Early Bull Market Under Technical Stress

NASDAQ: Bear Market In Consolidating Recovery Mode

By Christopher M. Quigley
http://www.wealthbuilder.ie

Mr. Quigley is 46 years of age and holds a Batchelor Degree in Management from Trinity College/College of Commerce, Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the Stock Market in San Francisco, California where he lived for 6 years. Now based in Dublin, Mr. Quigley actively trades utilising the principles set out in the modules above. This Wealthbuilder course has been developed over the last 9 years as a result of research, study, experience and successful application.

Christopher M. Quigley Archive

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