Here?s a quick update of our 2017 forecast model. Note, we created this back in 2016. Also, when we show this, we need to show you 2 versions, one normal and one inverted, as the model can invert and the most important part of the model is the key reversal dates.
In version 1, other than a sharp move lower to start the year, it has lined up pretty well with the initial move higher into late February. But then it inverted:
(Click to enlarge)
And since it has inverted, we have seen the March top line up into a move lower into the 4/18 key reversal date with a bounce into the end of April.
(Click to enlarge)
So which ever way the market heads, if we stay on the inverted model, we could see stocks weaken into the end of May to mid-June. Just remember, this model can be early, late, and invert. So it works best to just point out the Key Reversal Dates and the potential for a move.
Whether you?re bullish or bearish, you?ll have your own opinion. We are positioned Long the Qs for a continuation of the advance, given their buy signal and relative strength over bonds and the NYSE.