Market Charts

I like to listen to Basil Chapman, purveyor of the Chapman wave, on TFNN every once and a while and he has been steadfastly bullish through the whole summer. While all the bears were pounding the table before the big subprime sellof he would consistently counter with the simple phrase, "look at the charts, are they bullish or are they bearish?". Of course the charts did look bullish and possibly even more bullish now.

While I expect some resistance as the S&P, Dow, and Nasdaq all approach their highs, looking at the charts today, I'm sure Basil would agree that they look bullish.

This Bounce is OVER!

I'm entering short positions again tomorrow. I posted my bounce targets a few days ago and we are getting close. I especially like the fact that we are nearing the 20 day moving average on both the Dow and S&P, which acted as resistance on the first bounce, and volume is totally nonexistent. The Nasdaq seems to be the strongest index and is not offering any clear signals.