New Buy Signals!

Thursday July 29, 2010

 

Late Breaking news, the Dow Industrial, NASD and NYSE  Weekly Charts have issued a buy signal. It is not the  end of week but the signal is valid. Note the weekly  sell signal we discussed on or about Flash Crash, the market has now recovered. Readers will also recall our daily buy signal during the July 4 weekend.  Tomorrow is GDP and 50 corporations report. In addition, it is end of month window dressing for funds and 401 K money is due next week. We expect a big breakout to the upside.

Tomorrow is GDP and about 50 copmpany earnings reports.  But the market internals have spoken, and in a positive way.

 
ONe immediately notices the head and shoulders bottom. It appears that this buy signal is happening close to the break out neckline, note the double test this summer. We knew you would ask so we checked, the NYSE same indicator agrees but the NASD and DOW have not turned positive yet.

 
We take the weekly SAR Parabolic charts coupled with the point and figure charts very seriously. We suspect this means a strong up move in August, the fall still lies ahead.