The Analog Is Painfully True So Far
Tim Knight | Aug 01, 2013 12:56PM ET
Last month, I wrote an important piece about an analog I was seeing in the market -- the Russell 2000 in particular -- which called for an explosive final move higher. The data points I was observing were labeled 17 and 18 -- with 18 being the final high.
I wrote
Well, we are definitely higher since I wrote that (and this bear is definitely in a grim mindset) with lifetime highs (again), today, on most indexes, the bulls are still firmly in control. Of course crossing the 1700 threshold on the S&P 500 is great headline fodder awhile index charts don’t exactly scream “short opportunity”.
As I mentioned Wednesday night, I have resorted to cowering at a 50% commitment level. There are pieces of weakness here and there – gold and bonds, for example – but it’s quite obvious that the bid beneath stocks isn’t going away. It’ll be interesting to see if the specific target on the Russell I gave my Slope+ readers back on July 13 pans out. We’re not there yet.
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