30,000 foot view of the market

Lets look at the forest, not just the trees

I thought this might be a good time to look at the bigger picture for a minute before we go into the 3rd quarter Monday.  Overall, I think the correction we've endured the last couple months has ended and we are headed back up.

DJIA Weekly chart

DJIA Weekly Score

The chart speaks volumes to where we are.  We are seeing green candlesticks after the most recent decline, the slow stochastic is bullish with room to move higher, %B is relatively low, trend quality indicator is starting to show green, and the MACD is well positioned to cross over and start going uphill.  The weekly score, from my proprietary score generator, is mid range.  It usually bottoms out around 30-50 and can go as high as 250 at peaks.

Combining these facts with the knowledge that my favorite Elliot Wave counter has also come to the same conclusion, I feel good about our prospects for the rest of the year.  Longer term investors could probably get in here and be happy come December... as long as that whole fiscal cliff thing gets taken care of.

Here's wishing everyone a successful second half!