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What does 2007 have in store for stocks?  Will the Rally from the Summer Lows continue?  How about the rally from October of 2002?  The weekly charts show that the rally from the lows of October of 2002 'may' not be over.  There is slight bearish divergence using the RSI and MACD and other technical strength indicators.  The daily charts show that the rally from the lows of the Summer of 2007 should be about to turn and at the least correct a portion of the rally.  Once we get a confirmed sell signal ShepWave will issue targets for the indexes.  We have already had two 'false' sell signals over the past several weeks.  This is actually very common at 'key' market tops.  Based on the possibility of an 'ending diagonal' pattern from the lows of October of 2002 the weekly charts may NOT be as indicative of a potential continuation of the rally from the lows of October of 2002.  Again, ShepWave will continue to monitor the indexes and show key levels for potential 'bounce' areas once a confirmed 'break' of the indexes occurs.  In tonight's update I show what we are looking for over the next few weeks to confirm the recent up trend is correcting (or is over).

 

 

 

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