History Rhymes

Ron Griess over at the Chartstore had those interesting Charts where he compares the the March rally with historical bounces (75 & 82). Interesting enough those comparisons align well with the theme that we might have a more extended rally after some sort of correction.

The depth of the ensuing correction will tell us how far this analogy will carry, but we can clearly hint at the possibility that we might have reached some crossroad that could allow this correction to start right around this time period.

The notion of an extended rally is also reflected in some of the recent Volume analysis here on the blog where we observed a deeper penetration of the Bull market Range than initially anticipated.

Bottom line:
Short term view: bearish into mid July to end July (Will we test the March lows or even break or does Mr Market save this for September-October...?)

Medium term view: July to September rally could be possible (Will we take out the June Highs or follow the 2008 Path......?)

courtesy of the always excellent CHARTSTORE