Did I misread the technical indicators last week? I was leaning bearish because of them, even though the liquidity analysis was warning of an oversold reaction rally being imminent. So was the 13 week cycle setup. But the 6 month and 10-12 month cycles still looked bearish. I allowed for a short term rally, but with the proviso that I did not expect it to amount to much, because the longer cycles were still pointing down. “A 13 week cycle low is due in late May or the first half of June, with the projection of 3800-3820 now done. The up phase shouldn’t amount to much with both the 6 month and 10-12 month cycles in down phases.”
Fortunately, the chart pick list, which is born of a more mechanistic process that doesn’t allow for much thought pollution from me, was 100% long by mid week last week. The longs that I added early in May are doing really well. Maybe too well. I’ll get to that in the upcoming chart picks update.
As for the broad market as of now, the question is whether the rally will amount to more than “not much.”
This report lays out exactly what to look for, for the answer, including a new price target for the 6 month cycle high, and expected time frames for the 13 week, 6-8 week and 4 week cycles. It shows which price targets have been met, and which haven’t.
These reports are not investment advice. They are for informational purposes, intended for an audience of investment and trading professionals, and other experienced investors and traders. Chart pick performance changes week to week and past performance may not indicate future results, as you know. Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance.