Terry has noted that usually, somewhere in an ongoing rally you will see a pullback to the 55 DMA of the S&P but it hasn't happened. This has been a very strong mother which I think speaks of the money still sloshing around.
Feb 12th:
The chart of the Rate T forecasts below is calling for a low around Feb 14th and I
would expect some continued weakness into next week. A low around that date,
that is plus or minus, is likely to be a bottom prior to the resumption of the rally in
the new T that I have tentatively constructed in my update one week ago. A minimum
correction is still expected back to the 55 Day MA of the S&P and is currently
at 1414.
Note the low projected for 12/29 turned out to be significant a few days later as the
resulting rally from the early January actual low appears to formed a new Short
Range T. The low projected for 2/14, if it proves deep enough, could mark the
second low that commonly forms around Short Range Ts. However now that a new
T is forming, the low should not be below the early January low. Terry Laundry
Edited by Rogerdodger, 16 February 2007 - 11:02 AM.