Friday, November 11, 2011

Pullback or Consolidation Likely to Continue in Stocks

Click on Chart to Enlarge

The market has run up extremely fast over the last month. If you look at the numbers I showed on the bear market rallies in the last 2 bear markets you see that, and on the chart above the blue line shows a typical bull market rally/leg up. The market has greatly exceeded that rate of gain initially, so even if stocks continue to trend up, consolidation is very likely.