Monday, July 2, 2007

Ignore the Cheerleaders; nothing has changed

Here's the S&P 500 chart, including today's nice rally:




The technical pattern that is being traced out remains the same. This was a lower volume rally; let's see what happens when all the traders come back next week, or maybe sooner...

If this truly is a real bottom, we need more high volume strength, plus many sectors need to show some signs of bottoming (utilities, REITS, consumers, Healthcare, Biotech, Transports, et. al.) which hasn't happened yet. Life would be easier if it did, though; it is much easier to make money in an up market...June has been like a gladiator struggle for me.

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