The Last Days of a Mature Bull

Stan Harley |

39.8_79.6_Trading_Day_Cycles_12_3.jpg



DJIA the Final Index to Top-Out

Yesterday we saw the Dow Jones Industrials push into record high territory. But the lone bird blue chip index was unaccompanied by the other members of the Big Six: S&P 500, Dow Transports, New York Composite, NASDAQ Composite, the Russell 2000.  Tuesday’s 52 week New High / New Low tally: 121 New Highs, 126 New Lows - more new lows than new highs - with only 3.71% of stocks in the New High category. What we have here is a very mature bull market whose membership in the new high club is thinning by the day. This market is running out of rocket fuel.

159.2_Trading_Day___33.0_Week___12_2.jpg

The daily chart of the DJIA depicts an index that has pushed to the upper pattern boundary of a 1 X 1 angular channel that has defined the price structure for this index over the last 18 months. Price closed yesterday right on the upper 1 X 1.

Outlook___12_2.jpg

My indicator that depicts my 7/14/40 day measures of price velocity for the S&P 500 (not pictured) has both the 7 day and 14 day components trending south. I believe the final high is imminent.

Each month, Stan Harley publishes The Harley Market Letter, a newsletter that provides advanced technical analysis of stocks, bonds, and precious metals. This is the Harley Market Letter for December. Want to learn more from acclaimed market analyst Stan Harley? Visit his site and subscribe to the full Harley Market Letter.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Comments

Emerging Growth

NABUfit Global Inc

NABUfit Global Inc develops online fitness portal and a mobile app with the option of connecting existing and future monitoring devices (wearables etc.).

Private Markets

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…