Yes, there are plenty of bullish signs on the charts. For the short to intermediate term, that’s ok. It’s good enough, smart enough, and doggone it, people like it. But it violates Rule Number One, the First Commandment, “Thou shalt not fight the Fed!”
However, on this side of the Liquidity Trader stable, we focus on the technical, and it has gotten more bullish. Trust but verify, right?
Cycles- Despite the rally, the 10-12 month cycle is still due to start topping out xxxx xxxx, with the top phase lasting through xxxxxxxxx. The new projection of xxxx was already hit xxxx xxxxxx xxxxxx xxxxxxxx, at the beginning of the up phase. The current attempt should see resistance between xxxx and xxxx. Non subscribers click here to access.
Meanwhile, 6 month cycle indicators xxxxxxx xxxxxxx indicated an up phase. The October low was xxxxxx xxxxx for a low on that cycle, but perhaps the 6 month and 13 week cycles have merged into a hybrid of around xxx months duration. If so, the high would be due in xxxxxxxxxx, concurrent with the 10-12 month cycle high. Non subscribers click here to access.
Third Rail The market ran right to the top of the short term uptrend channel it had set up the week before. That top line rises from xxxx to xxxx this week. The magic number on FOMC day on Wednesday is xxxx. If they get above that, they’ll blow the roof off to xxxx by the end of the week. If they drop under xxxx, then we’re likely to see xxxx. Non subscribers click here to access.
The breakout from the base that formed over the past month has a conventional measured move target of xxxx. Non subscribers click here to access.
Long Term Weekly Chart – A weekly close above xxxx would break the 6 month cycle line, signaling an up phase in that cycle, with an initial target of around xxxx on this chart. Failure to be clear of xxxx at the end of the week would suggest that the 6 month cycle down phase remains intact. Non subscribers click here to access.
Monthly Chart – Trend resistance will begin November at xxxx, after it appears that the SPX will end October above expected resistance around xxxx.Non subscribers click here to access.
Long term momentum has reached a critical level that could either indicate a major bottom if it turns up, or a secular bear market if it continues lower. Non subscribers click here to access.
Cycle Screening Measures – The cycle screening aggregate rose sharply last week. Indicator patterns have xxxx xxxxxxx xxxxxx intermediate term, and possibly xxxxxxx. Non subscribers click here to access.
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.