Look at this chart – it proves it
- NYSE Composite Index
Last week was critical to the proof of this theory. I have marked the primary channel that we have been in for the past few decades. We are now at the midpoint of the channel again and so we should get to over 10,500 on this index. The weekly RSI is nowhere near a high and has lots of room to go.
If you look at Jan 1997 and July 2003 you will see that we also managed to cross into the upper channel and see what happened next. We should now see all the money from the sidelines come in to buy stocks in this resilient market.
Of course should the NYA go back below the line then it wouldbe time to go to cash, until it gets back above it again.
