In an unreal market in an unreal world, Friday’s selloff doesn’t exactly strike me as “the real thing” either. Maybe I’ve become too conditioned to expect the fraud to continue, and I’ll miss the real turn when it does come, and maybe this is it, but I don’t think so… yet.
Cycle screens had a small pullback today. The aggregate indicator dipped slightly after establishing a new high for this year.
By stopping at the long term trendline extended from the 2007 highs, the market gave the bears a thin thread to hang onto.
Cycle screening measures strengthened Wednesday, again supporting the new highs in the market averages. The aggregate index broke out to another new 3 month high.
This market reminds me of the Roaring Twenties. Coincidentally, initial cycle projections point to that area.
Some signs suggest that this may be only the beginning of a new 6 month cycle up phase. A whipsaw could change that appearance.
Cycle screening measures had their best day in weeks, confirming the rally in the averages. These indicators have edged to new minor highs, and are in position to confirm a launch in stock prices on any near term strength.
The market has set up what appears to be a launch pad pattern. The countdown is on. Will the rocket launch from the 1880 area or explode on the pad? Tomorrow starts April’s massive seasonal liquidity flows.
Cycle screening measures strengthened modestly on Friday, but not enough to give an unqualified buy signal. Here’s what needs to happen.
Cycle screening measures tilted a little more to the sell side yesterday, with just the new 6-7 week cycle signals and 6 month cycle current status holding on to the buy side. As long as they continue to do so, along with the aggregate indicator holds above the -500 level and the SPX holding above…