Much as we might wish for Friday’s rally to have been a one-day fluke, the buying generated a robust impulse leg on the hourly chart that bears will have to reckon with when the new week begins. Any short-covering is likely to be subdued, however, since many traders and Wall Street denizens will be observing Rosh Hashanah, the Jewish New Year, from Sunday evening until Tuesday evening. (Subscribers please note: Rick’s Picks will not be published on Tuesday for this reason.) In any event, you should use the ABC pattern shown to gauge the strength of any buying. It seems unlikely that DaBoyz will try for new record highs on Monday or Tuesday, but we shouldn’t be surprised if they position the broad averages for a short squeeze that accomplishes this on Wednesday.
