Make-it, or, Break-it

[Guest ike]

Summary:

 

Yesterday (12-10-03) I said:

 

"The action today didn't provide a resolution to the impasse, however, buyers' emergence near the close, along with the Dover Sole condition reached by several indicators such as the McClellan Oscillator, suggests that the odds are better than even for a rally tomorrow, or, the day after. The real question is whether any rally that originates from this Dover Sole condition, can actually develop into a break-out move that will take the indices to the first upside targets. "

 

After the close 12-11-03

 

Yesterday I concentrated on the Dover Sole readings for the NASDAQ McClellan Oscillator, because I believed, that should have been the primary focus. However, today we need to shift our focus to the SP, and the NYSE. We got two important developments:

 

a) Notice that the NYSE Oscillator is at the zero line, while the NYSE is making a new recovery high. If the NYSE Oscillator doesn't get above zero, it would suggest a rally failure.

 

Notice that the move so far, is identical to the previous one, and today we are at the point where the previous stalled.

 

In summary, we got the bounce, but now the indices are at a make-it, or, break-it point, because if today's rally was to fail, it would fail between current levels and 1% higher.

 

 

 

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