This market is doing some very unusual things technically speaking, and that’s extremely troubling.
The market broke key support yesterday, but not by much. This morning it is attempting to regain that level. If successful, a 4 week cycle upturn could be under way, but the market would need to clear the 1355 area to have any room to run on the upside. If the market fails to recover…
Monday could be a bit rough with payments due for the settlement of $54 billion in new Treasury paper, but the technical signals still point higher.
Indicator patterns in all time frames seem to be becoming increasingly ambiguous. However, with short term cycles due for up phases, if they fail to turn up that would suggest that the longer term cycles are weakening, consistent with the 10-12 month cycle topping out.
The market lifted off from support trendlines in an apparent 4 week and 6-7 week cycle upturn. Here’s what the data says about intermediate and longer term cycles.
The market found its footing on Wednesday, establishing that the 1350-60 area is now support. Resistance is now indicated immediately overhead. That could lead to development of a short term trading range. But what about after that?
The market is again testing the high. It has backed off in the early going on Sunday night, but I’m more interested in where New York closes, not where New Zealand opens. Until there’s a clear and convincing break of a certain key support level combined with certain other indications, the upside projections on 6…
The market continues to trend weakly higher. Cycle indicators have become all but worthless in the process. All that’s left is to follow the bouncing ball as it rolls uphill along the trendlines, until it doesn’t. All intermediate cycle projections now point to 1420-30. It’s pretty simple from here.
The slow motion meltup goes on. The market averages are on the brink of pushing through a major resistance level. That could lead to much higher prices over the next several weeks as the players look forward to the big ECB financing operation on February 29.
The rally has stalled and time counts suggest that a correction is due, but centered moving average projections still point higher. Which should get more weight?