Market's been jammin up but I think it's days are numbered. You heard it here first, Dow to 10500 by mid- April (if not sooner). Why do I say this? I chart the market using technical analysis. There are some clear patterns developing in the DJIA. One is a long-term ascending wedge, which is a bullish pattern. This wedge started back in '04 and has gone through 3 tops and 3 bottoms. Today it made what I am guessing will be its last top. Secondly on a smaller timeline, since November the market has been making a expanding top (also know as a megaphone top). This is another bullish pattern. Again today, the pattern was completed when the last needed top was made. Lastly, over the last six days the DJIA has been making a smaller ascending wedge. It's running out of room on this wedge and tomorrow should see some action to lower prices. The reason I say that the Dow will reach 10500 is that that is the number at the low end of the really large ascending wedge (because we're at the end of that one, the price will probably go through 10500). Also 10500 is the bottom of the 6-month wedge (again it's the end of the wedge so it'll probably go lower). Even if you don't pay attention to the market and don't care what the Dow does because all of your mamby pamby stocks are mid cap defense b.s. (BTW, civil war in Iraq and growing domestic dissent will nullify those stocks) -- a drop of 700+ points in the DJIA in a month will be felt.
Of course, the patterns could fall apart and if they do I'll let you know but it is interesting that three time frames (5 year, 6 months and 10 day) are all showing classic bullish patterns.
