See Chart Below.

The rising wedge in the COMPQ continues, with Monday’s close at the top of the range. The market felt bullish, with only 7 of the 80 funds we track losing on the day.

The dollar, the internet, Japan, and the airlines fell. The question is whether three will be enough momentum to push over 2220, or another fall back. The Bollinger squeeze (blue arrows) and the narrowing of the wedge suggests a big move. I think that if we don’t push higher, we’ll get a break back to 2140, or worst case, to 2120.

Much depends on how the market responds to spending, manujfacturing, trade balances, and inflation–all data that will break before tomorrow’s market opening.

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