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No, really. How high can this market keep going?
That’s the question a lot of people are asking. It isn’t surprising that once the S&P 500’s perfect head and shoulder pattern failed, prices rocketed higher - almost non-stop. We’ve had 12 consecutive trading days closing higher. That kind of streak is not only extremely rare, it is an unmistakable sign of surging momentum.
Now, many are pointing to a head and shoulder bottoming formation (on a larger time frame) and expecting prices to keep rising. Actually, I commented at the beginning of June 2009 that we may see a flag formation and then a break to the upside: Comparing Flag Formations: Then & Now.
Amazingly enough, we seem to be replaying the same price action that we had when we came out of the last bear market. The similarities are uncanny as I’ve mentioned more than once. So what’s next?
Below is a short video that briefly summarizes what the market has done and then finishes by looking ahead to what we may see next week and next month.
Click to watch video:
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