The market got a little uglier today as cycle screening measures continued to weaken, some broad market technical indicators edged to the sell side, and negative divergences persisted.
A number of indicators are in patterns that create important inflection points. They could signal another short term pullback, or that the rally has much farther to go.
There were a few technical chinks behind the small uptick in the market averages on Friday. Cycle screening measures were a tad weaker and negative divergences in intermediate cycle oscillators show no signs of resolving positively yet. The 6-7 week cycle is due for a down phase and its projection of 1882 was hit, but…
Most indicators strengthened slightly today. Some cycle projections rose. The market is challenging trend resistance. Could it accelerate if it breaks through?
Given the immense changes and exciting tape action in the market today I…yawn… but all the charts and tables are updated… yawn. Cycle projections barely moved, with a range of higher projections.
Yesterday I was unwilling to give a new 13 week cycle projection of 1955 any weight. That was before the market got crazier today. Now other cycles are also projecting seemingly ridiculous numbers.
Technical indicators weakened along with the market averages, but not enough to trigger intermediate sell signals. The 4 week cycle remains in a down phase that finally actually saw prices decline instead of churning higher. 6-7 week cycle screening measures have been weakening for days, and the effects of that are finally showing up.
The market rallied through resistance on Friday, but could not hold there, leaving the status of the rally in question.
The market continued to grind higher, edging to new highs in spite of recent weakening in short term indicators.
Is this one of those infernal internal corrections that bears dread? Here are the particulars. You be the judge.