The markets are continuing their sideways chop. My target for the next trading cycle low was misstated in my last issue as “April 3” – actually, it should have read “April 6. Shortly after sending out the copy, I found some inconsistencies in my spreadsheet counter and discovered that I failed to correctly account for the fact that the markets will be closed on April 3 for the Easter holiday.
We have an FOMC announcement tomorrow and a follow-on chair press conference. Fed watchers will be dissecting every word of Janet Yellen in an attempt to ascertain any tidbits on the economy and the future direction of interest rates.
I’m anticipating a right shoulder “high” of sorts in the coming days – March 24 still stands out on my charts but I would advise flexibility on that. Following that pending high, I look for a slice-and-dice move down into the April 6 time period to complete the pattern off the late February series of highs. The ideal scenario for me would be to see the NYSE Advance/Decline Line to undergo a serious whack into that April 6 low – thereby setting up a divergent structure at the May high – bull market peak? – with the Dow/S&P/NYA/NAZ at all-time highs and a lower high in the A/D Line.
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