The broader averages are also in the process of building final waves higher, illustrated here on the hourly chart of the SP500. Personally, I believe we will continue the grind higher into early next week, towards the previously mentioned 1040-1050 range. However, this rally could also finish at any time now, and I would respect any signs of weakness, for example if SP500 trades below 1015 level, highlighted on the chart. Trading below 1000 would herald, to me, the beginnings of a meaningful correction.
AIG is clearly destined for the Moon, or the Everest at least. So says its CEO, who claims that the company will repay the US Government. As a note, AIG owes $182.5 billion. Its profit in Q2 2009 was $1.83 billion. Assume that it doesn't have a single negative quarter, and turns 100% of its profits to the US Government... and it would take it about 25 years, at the current rate, to repay the loans. Markets are forward looking, but 25 years???
Citigroup, shown here on a daily chart, is finishing its C wave, the internals of which are on the hourly chart below this one.
Citigroup, hourly
Finally, I believe the US dollar is in the process of finishing its diagonal down, pending a mighty move higher.
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