Sunday, June 20, 2010
Thoughts On The Week Ahead
It seems pretty likely that we completed an impulse off of the 5/25 low on Friday, but it is possible that the impulse continues to extend. It is more likely that we will sideways to down action this week to correct the impulse before we see higher prices at the end of the month and first of July. Of course the bears will be calling any selloff the beginning of a 3rd wave breakdown, but I just can't agree with that view. An impulse will always be followed by another impulse, Looking back over the last decade it is clear that after strong spring selloffs the usual course is a rally throughout the summer even if new highs are not seen. I don't know why we would expect anything different this time around, and with all of the buy signals last week there is no reason to jump ship this week, unless the bears turn out to be right, of course.
Posted by R. Craig Pritchard at 1:06 PM