Save Your Guesses: Here's Where Stocks Are Going

Buyers exceeded my 2333.75 minimum upside objective by a decisive four points on Tuesday, meaning it’s time to raise our sights.  We need only slide down to a new point ‘A’ — in this case, a 2177.00 low recorded on December 5 (see inset) — to produce a fresh target at 2384.75 noted here earlier. That would equate to a Dow rally of about 450 points, which is no big deal these days, especially if it occurs over the course of a week. This target should work, and very precisely. This means that: 1) I am confident it will be achieved; and 2) there is likely to be a tradable pullback from it, give or take no more than a point or two.

There is a possibility that the actual high will occur at 2387.50, since there’s a slightly lower, alternative point ‘A’ available on the chart.  This is a small matter, however, since either target will provide a basis for trading with a bullish bias at least until the lower number is reached. In the meantime, we may decide to use a pullback to p or p2 to set up a mechanical entry, so stay tuned to the chat room and The Scoreboard if you’re keen on trading this vehicle.

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