The S&P has hit our downside target of 1240, the Dow was within 53 points of our 10,750 target, and today has all the signs of being a good reversal day.
We have had several days of back and forth action, and every rally has been a meaningless rally, but if we can reverse today, and close higher, the short term correction could come to an end.
The market has some short term positives to focus on; oil prices are lower, the Fed and the ECB are acknowledging the inflation problem, pessimism is building, and put buying and short interest are up.
I don't know if I'm right, but today would be a good day for a reversal.
Comments (2)
I am surprised that there are not many comments on this blog. I just want to say, John, you have a great blog. Hopefully you will be right that we will see a summer rally. Keep up the good work!
Posted by yc32 | June 8, 2006 5:51 PM
Posted on June 8, 2006 17:51
John,
I gotta give full credit to you for this reversal call today. You have been predicting this turn around for a while and you nailed it to the day - and it came complete with a sharp intraday move down and a V shaped reversal on HEAVY volume! Looking forward to retracing the early market highs on this upturn. At the end of this run, I would love to be net short the market.
Like YC32, I visit your blog daily and love your straight talk.
Posted by jragusa | June 8, 2006 6:48 PM
Posted on June 8, 2006 18:48