An Old Bull Keeps Climbing...

Stan Harley |

Higher into Next Week – Then…

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This old papa Bull Market marches on.
We’ve had a few days of minor consolidation – just enough to work off some of the overbought conditions on the hourly charts. By tomorrow, though, I think we should be prepped to continue the push higher. Friday’s employment report may well add to the upside enthusiasm. Among the senior circuit, only the Dow Transports have failed as yet to eek out new highs – but that doesn’t concern me. The transports will likely join the new high club very shortly. It’s a bull market – a very old bull market – but destined for still higher highs in the coming days. Next week, though, the March 11/12 time period could present an opportunity to take some profits.

 

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I’m still studying the structure, but I think we may be setting up for a serious whack in the market beginning around March 11/12, and carrying into April 8. That decline would set up the technical underpinnings for some divergences of import at the final high - which I am still tentatively targeting for the May 11/12 time period.

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The NAZ Comp has just kissed the all-important 5,000 mile marker – which could bring back the sellers next week. March 11/12 may mark a trading cycle high, and a point at which I may revert to bearish for what could be a fairly serious, month-long decline – not a bull market killer – but a serious selloff nonetheless.     

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Each month, Stan Harley publishes TheHarley Market Letter, a newsletter that provides advanced technical analysis of stocks, bonds, and precious metals. This is the latest update to the Harley Market Letter for February. Want to learn more from acclaimed market analyst Stan Harley? Visit his site and subscribe to the full Harley Market Letter


 

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