Thursday, February 01, 2007
Bull Market Boxes
Here are two weekly bar charts of the cash S&P 500 index. The first one is highly condensed and covers the entire bull market from its beginning at the 2002 low point. The second one is a closer look at the price action over the past two years. I last commented on these charts here.
On each chart I have drawn the 185 point boxes that I believe are controlling the swings within this bull market. I want to bring your attention to the top chart. If you look closely you will see that last week's break "tested" the 1/2 division point of the current box and this week's action shows acceleration above that line to new bull market highs. I think this means that a move to the top of the current box near 1512 is underway. I think that level will be reached sometime during the next two months.