underperforming?, page-5

The volume of shares traded the last few days has been extremely high. those that bought on the hype are now looking to exit causing a small reteracement - it always happens!

DOW likely to be down for a few days according to technicals so expect any rally to recommence end of this week more likely early next week.

Excerpt from Mchughs report for those that like the charts.....

The Dow Industrials rose 15.27 points, closing at 9,108.51 Monday. NYSE volume rose to 95 percent of its 10 day average. Upside volume led at 64 percent, with advancing issues leading at 64 percent, with upside points at 65 percent. S&P 500 Demand Power was flat at 418, while Supply Pressure fell 3 points to 350, telling us a lack of selling was evident. The 15 minute Full Stochastics are suggesting prices could decline Tuesday, while the 30 and 60 minute Full Stochastics give indecisive price guidance short-term. The S&P 500 looks very close to completing a small Rising Bearish Wedge termination top pattern for wave 5 up, shown on page 10. Our feeling is that wave (1) up is close to finishing, and a decline that lasts several days, wave (2) down, could start this week. The Daily Full Stochastics are overbought, which supports the imminent timing of wave (1)'s top. The rising Advance Decline Line suggests wave (2) 's decline may not be very deep.



There is a larger degree Bullish Head & Shoulders Pattern than the one we have been showing lately, that has just completed, from October 2008, that has an upside target of 11,500ish. See page 11. Therefore, there is an increasing probability that this rally has another 2,500 points left in it, enough to turn the majority of investors strongly Bullish. Wave (B) up has been a fast mover. Two of its three waves, A-up, and B-down, have completed in just 4 months. And, the first leg of C-up, wave (1) up looks to be very close to completion. If it tops this week, as we suspect, wave (1) would've lasted only about two weeks. This puts wave C-up and (B) up on a pace to top this autumn, 2009, possibly around our September phi mate turn date, maybe at a later phi mate turn date scheduled in autumn 2009. If the pace of this move changes, we will let you know.