Is Your Powder Dry?

It seems rather clear a base is being set up here which indicates the markets will be moving higher sometime soon. The 50 day moving average on the NASDAQ Comp, shown below, has drawn a line in the sand and seems ready to turn higher toward the 200 day. Market action, with respect to price movement versus volume, has been better than expected since the rally attempt began prior to Good Friday.

Richard Russell, editor of the DOW Theory Letters newsletter, indicated this week that he believes the bull market, which began in the early 80's remains intact. To get more in depth, read about it at MarketWatch.com.

It is tough to go against the onslaught of media coverage saying otherwise, including predictions of the second coming of the Great Depression, but I let the tape dictate my interpretations. With a potential ascending triangle at work in both the NDQC and the DOW, I have a sneaking suspicion Mr. Russell is right on target. The tape tells me that, until I see market action showing otherwise, the bottom is in and the market will continue to push higher.

Prognosticators are correct as there is in fact a second coming heading our way; the return of Led Zeppelin. Ramble On!