The market is testing its high with hints of increasing technical strength as it does.
With mixed indicators reflecting the market’s indecision we’re playing a waiting game. But there are certain parameters that could result in the market rendering a clear direction signal by the end of this week.
The market did the minimum it needed to do to keep the uptrend intact. While short term cycles should be in down phases, prices have given little ground as intermediate cycles remain in narrow up phases. This report shows why the bulls will probably get their Thanksgiving Turkey.
Market indicators are a mixed bag, with some negatives in the short run, but a key longer term indicator just gave a bullish confirmation signal that has implications for the next six months.
A week of creeping weakness in cycle screening measures caught up with prices over the past two days as the market began to pull back. Indicators are now mixed. Cycle projections have come down.
Prices finally followed 7 days of weakening cycle screening measures. So far, this only appears to be a short term decline. Intermediate indicators remain solidly positive.
The 4 week cycle projection was hit and that cycle is due for a down phase, but there’s still time left on the clock for the next 4 longer waves.
The market marked time as it entered the less favorable liquidity period around the turn of the month. Cycle measures give some basis for caution, but aren’t ringing an alarm yet.
The market rallied again on Friday in spite of further weakening in cycle screening measures. Cycle projections rose and broad market indicators remained strong.
Cycle screening measures did not support the rally today, but neither do they give any indication that a significant decline is imminent. Most cycle projections still point higher, and several key resistance lines will be pivotal.