wmeubank@ocp.kcmo.com
THE VOLUME REVERSAL SURVEY
TECHNICAL COMMENTS
Dow 8030 Still On The Horizon
STOCK MARKET: The party continues for the stock market. New record highs set this past Friday reconfirm the bull market. but, that's only part of the story. Internal indicators provide confirmation with no serious divergences, bearish sentiment is still running quite high, the bond market is moving nicely to the upside and all within the context of my bullish Annual Forecast Model (AFM). With regard to that model, a theoretical low point is due this coming Friday, June 13. Traders should be aware of the risk of a pullback in the S&P 500 (cash) back to 851.50 at some point this coming week. That would equate with a pullback in the OEX to approximately 832,000 and the Dow back to 7385.00. I generally don't like to focus to closely on individual dates, but with the AFM working to well in defining short-term turning points in the past few months it is certainly worth paying attention to. Obviously, if a low forms it would come from new record highs. Beyond that potential dip, my Dow 8030 target still is quite valid. A halfway stopping point is Dow 7799. Frankly, I wouldn't be surprised if new higher targets are formed along with way. According to the AFM, after mid- August and especially during September, caution needs to be exercised as a significant market correction could unfold.
June 8, 1997
The Volume Reversal Survey
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