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Message: 2005/06 Redux?

The 2005/06 move came after a consolidation, a different shaped one than the one we just came through, but a consolidation none the less. While the stock is just now getting overbought on the weekly chart, the 2005/06 period shows us that the biggest part of the move occured after the stock was already overbought and it stayed overbought for months. Also, what we just experienced was more than your run of the mill bull market correction. At the lows, this one wiped out virtually ALL of the gains since the onset of the bull. It only follows then that the move off of the lows has the potential to be equally dramatic.

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