Tuesday, October 4, 2011

Putting In A Low

I think a strong case can be made that with the market's reversal today and close back above the August closing low that an intermediate low is now in place.  There are outcomes that would allow for another retest, but it looks as though the monthly pattern I showed on Friday, Familiar Pattern, has been fulfilled, and a 4th quarter rally is now probably underway.  At a minimum the Qs should exceed the September high by year end.  An immediate reversal that takes out today's low would invalidate this view.

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