Discussion in 'Trading' started by innovest_11, Mar 9, 2007.
Which direction will market go for coming weeks?
about 90% of the posts im reading say up.
Markets may head higher but I think they are coming right back down. I think the DOW heads back down to 12,000. Also anyone expecting a rate cut should keep dreaming because its not happening anytime soon.
If today was the top, and that is a big IF, it would mean there is a good chance the s&P 500 would drop down to 1265. The dow would drop to 11050.
Im looking for the DOW to drop below 12k and head to around the 11700 area.
Besides that I have been pulling up article after article, each of them saying that this "minor" correction may be over and that new highs may be on the way. I saw maybe 1 or 2 people turn very bearish a couple of months ago. Tough to believe this market can run strong again, but anything is possible. Many forecasting 8-15% returns again this year. Next week we get CPI and PPI both may be a bit higher than expected. Also earnings from the big brokers. Even though I continue to read how bullish everyone is I think the markets head lower. I would wait for at least one more 5%+ correction to start buying.
I'm just using standard fibonacci projections. They work surprisingly well as long as the original "top" premise is correct. A standard abc correction would go to the levels I mentioned. Obviously the higher we go from here the higher the bottom projection would be.
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