I may regret this headline when I go through the chart pick screens this morning, but at least we have a context. If a chart is ambiguous, I want to come down on the side of caution in terms or whether or not to short. At the same time, xxxx xxxxxxxxx xxxxxx xxxxxxxxxxx xxxxxxxxx, xxx the individual setup would need to be very powerful for me to want to try to board the bull train at this stage of the rally. Besides, we’re already on it.
Cycles- Short term cycles are due to top out between xxxxxxxxxxxxxxx and xxxxxxxxx, with projected highs of xxxxxxxx-xxxxxxxx. But it’s too early for the 13 week and 6 month cycles to top out and roll over. Ideally that would happen in xxxxxxxxxxxxxxx xx xxxxxx.
Of course we don’t live in an ideal world, so we need to be alert for signs of an earlier peak.
Third Rail Channels – Potential intermediate term trend resistance starts the week at xxxx and drops by approximately 15 points per day to xxxx on Friday. If that’s cleared, then the target would be resistance around xxxx-xx. Below xxxx-xx, there’s nothing but air to around xxxx.
Long Term Weekly Chart – The turn in late May suggested an intermediate bottom. The rally is also what I call a “return to the scene of the crime,” where the market rallies back to the area of a technical breakdown. The rally could extend to xxxx without negating the negative implications of the breakdown. Any higher would call that into question.
Monthly Chart – The SPX stabilized above a long term uptrend line at xxxx at the end of May,. If it breaks , the target would be approximately xxxx. If it holds look for resistance around xxxx.
Cycle Screening Measures – The aggregate formed a double peak with the March high. However, the number remains strongly positive; the short term pattern xxxx xxxxxxx, and the intermediate term pattern xxxxxxxxxxxxxxxxxxxxxxxxxxx. The market would need to xxxxxxxxxxxxxxxxxxxxxxxx Monday and/or Tuesday to xxxxxxxxxx short term xxxxxxxxx pattern.
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.