By Poly

This is an excerpt from this weekend’s premium update from the The Financial Tap, which is dedicated to helping people learn to grow into successful investors by providing cycle research on multiple markets delivered twice weekly. Now offering monthly & quarterly subscriptions with 30 day refund. Promo code ZEN saves 10%.

Besides that one, intra-day push to new all-time highs last week, this nearly complete, 40 day Cycle has essentially gone nowhere. And the same could be said for the two preceding Daily Cycle’s, in the end they added only marginal gains after a long series of daily whipsawing moves that failed to advance the Cycle. If we consider what the equity markets have managed to accomplish for 3 straight years, namely their ability to make significant new highs with each and every Investor Cycle, then this IC is certainly a change in that character.

Is it a change in character that is signaling a market top of some type? I think that must be given serious consideration, because any time a Cycle picture drastically changes, it’s simply a reflection of an underlying change in the market dynamics. We need to wait and see, also being aware that the expected decline into a schedule DCL over the next 5 sessions does not fool people into immediately thinking that the market topped.

I suspect that a quick flush into a DCL will be met with strong dip buying again, resulting in one more big push to recent highs. It’s that high which should mark a Left Translated Daily Cycle, before what could then potentially be the start of a “market correction” (-10%) like decline into the next Investor Cycle Low. I know there is lot of speculation in those comments, but the weekly count on week 30 is powerful evidence to support a significant breakdown is coming.

5-6 Equities Daily

 

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