Last week I described how unbelievably bullish it all looked. That turned out to be correct, and could get worse from here (for bears).
Cycles- Cycle projections have risen. Both the 6 month and 10-12 month cycle up phases now project to xxxx. The high on the 6 month cycle is due xxxxxxxx xx to xxxxxxx xx. The 10-12 month cycle high is due in xxxxxxxxxx xxxxx xxxxxxx, suggesting a double top. Non subscribers click here to access.
The 13 week cycle projects to only xxxx. Shorter cycle projections suggest an interim high between here and xxxx. Non subscribers click here to access.
Third Rail Channels – The measured move target of xxxx is now in play. The current meltup channel centerline will go from xxxx to xxxx this week. That needs to be broken to end this phase of the rally. Non subscribers click here to access.
There’s a cluster of longer term resistance lines from xxxx to xxxx. If they don’t stop this thing the next target would be the March high of xxxx. Yikes! Non subscribers click here to access.
Long Term Weekly Chart – The market faces major trend resistance xxxx xxxx at xxxx. If it clears that, it would have clearance to xxxx. An extension of the rally from here would start triggering longer term xxxx xxxxxxx. A rollover now from here would xxxx xxxx xxxx xxxx. Non subscribers click here to access.
Monthly Chart – Clearing xxxx would make room for a move to xx-xxxx. Failing to clear xxxx would allow for a drop to trend support around xxxx. Non subscribers click here to access.
Cycle Screening Measures – The patterns are very similar to March – April 2020, as you can see on the second chart.
If the market drops on Monday, it would set up a 3 step negative divergence that would normally signal that a short term market peak is at hand. But if it keeps going, it would show that cyclical breadth momentum is strengthening, which would suggest significantly more upside.
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.