Saturday, February 19, 2005


The weekly Dow closed down 10 points but the chart looks quite positive. The stochastics indicator at the bottom is again over 80 and the price bar is green. A target can be constructed from this chart of about 11270--higher than the 11100 I've measured on the daily chart. What could make the market move up 400-500 points from here? I don't know, but if a .8% monthly increase in the CPI (minus food and energy) can't make the market tank, like the action on Friday 2/18, the market will take any positive news and overvalue it, I think.

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