Market Watch – 04/22/2011

The reverse head and shoulder formation is complete and the neckline has been broken for the Dow 30.  I expect the market will be bullish at least in the next couple of months without major correction.  The price target should have the same distance from the neckline as that from the head to the neckline.

Together with the major indexes, the commodity prices should keep up making new highs, especially for the gold and silver.  The crude oil will also make multi-year high, pushing up the gasoline price, hurting consumer spending and lifting production costs of the businesses as the consequences which will drag the U.S. economy back to recession in the second half of 2011 in my opinion.

The U.S. dollar should keep on the downward momentum until the major markets reverse.

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