I am watching the pattern, the structure, and a plethora of indicators for signs of a pending high. With the Dow Industrials, the S&P 500, and Dow Transports at record highs – unconfirmed by a host of other major indices – we have the technical underpinnings for my expected high-point reversal. The cyclical pattern – the 79.6 month, the 893 trading day, and the shorter term 39.89 / 79.6 trading day pattern – are all suggestive of not only just a short term high but a major bull market peak. I know there is risk in that statement, but the lion’s share of my research points to just that: a pending major top.
The daily chart of the S&P depicts an index that has pushed outside the series of parallel 1 X 1 angular channels and, in the process, pushed up to tag the 2,062.50 price octave – my long-term outstanding target. Price closed yesterday just slightly above that level. The indicator that depicts my 7/14/40 day measures of price velocity, too, is exhibiting the structure of a pending high as well. All we need now is confirmation. That fleeting confirmation….November 26th +/- looks like the best fit. Happy Thanksgiving….
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