Stocks have impulsed to below last week’s blastoff point, but again we are in limbo with unconfirmed patterns pointing both ways. If the market keeps moving higher, as it has been doing cautiously since the Tuesday low, a key level to watch will be 1264.00. That’s where a large bullish pattern would be activated whose first target (the midpoint) would be at 1319.00. The pricetag on its sibling “D” target is not fit to print, and since it is unconfirmed, we’ll demur. If the market rallies somewhat less than that and then turns back down, we’ll get some clear bearish targets based on this week’s impulsive decline. (Posted by Doug “harry” McLagan)
