"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 34 mins Merger Mania Takes Hold In Middle East
  • 3 hours European Union Hits Google With A $5 Billion Fine
  • 2 days Major League Baseball Turns To Blockchain Tech
  • 3 days Institutional Investors Hold A Lot More Crypto Than You Think
  • 3 days U.S. Treasury Yields Could Be About To Break Out
  • 3 days Tesla Stock Stumbles On Model 3 Cancellations
  • 3 days Yuan Rebounds At The Expense Of The U.S. Dollar
  • 3 days Iraq Unplugged: No Internet, No Protests, No Money
  • 3 days The Tariff War Could Spark A Debt Crisis In China
  • 4 days Gold Selloff Continues As Dollar Climbs Higher
  • 4 days Gold Investors In A Frenzy Over Sunken Russian Warship
  • 4 days The New King Of Electric Cars
  • 4 days BlackRock Goes Bitcoin
  • 4 days U.S. Banks See Best Earnings Report In Years
  • 4 days The Case For Gold Is Not About Price
  • 4 days Stock Market Sentiment Turns Bullish
  • 5 days What Is Bitcoin Really Supposed To Be?
  • 5 days The Surprising Media Giant Taking On Netflix
  • 5 days Cybersecurity Stocks Are Red-Hot As Election Looms
  • 5 days Americans Grow Weary Of U.S. Trade Policy
China’s Capital Markets Roiled By U.S. Trade Dispute

China’s Capital Markets Roiled By U.S. Trade Dispute

China’s exciting stock markets have…

Nasdaq Bets Big On The Treasury Market

Nasdaq Bets Big On The Treasury Market

In a bid to leverage…

Canada’s Tech Sector Is Booming

Canada’s Tech Sector Is Booming

While stocks in the U.S.…

Stock Market: CNBC Report

LET'S LOOK AT THE FTSE DAILY CHART

This is a continuous contract. The index continues to struggle against the "obvious" April/May highs of last year. The tendency for this pattern is one of distribution before a move down. There has been no evidence of trending down. Let me make that clear there is no evidence of trending. Just a lot of sideways struggle and upside testing. If it cannot move out of this pattern now with the other stock indexes staring to trend there is an intermediate term problem.

LET'S LOOK AT THE DAX

Last week we looked at the DAX and CAC 40 and I explained that the current pattern was a" running congestion" and is always followed by a fast movement. That movement could be in either direction but after three thrusts the index was going to start the fast move last week. You can see the fast trend is up in the DAX. This is now an exhaustive phase of this trend and will not correct back more than 4 days until the trend is complete. Or better said when it corrects more than 4 days the trend is complete. The DAX should not pull back into that congestion or the uptrend is likely complete.

LET'S LOOK AT THE S&P 500 INDEX

We had a Gann forecast the index would go up into this time period with a top between 1450 and 1458, the index hit 1449 on Friday. If price can move through this level or past the 90+ calendar day" time," the next level in price is 1484 and the next time is not until the 28th of February. There is resistance today from price and time but with momentum this strong the resistance could create a multi day counter trend down and not a change in trend.

LET'S LOOK AT THE US BOND MARKET

This capitulating trend down was interrupted by a large two day rally that momentarily moved above the last low and gave stock traders a reprieve. When a market is in an exhaustion style of trend down, as this is, moving above a low is usually an indication the trend is slowing. This is a bit close to the high to see that pattern, so what occurs the next two or three days is very important. This market should continue down and not test that reversal day high. That rally was only 2 days and bonds should see a new swing low this week or something is wrong with the downtrend. It is still possible to see a scary move down that could slow the advance in stocks. The best timing I had is for a March first low.

 

Back to homepage

Leave a comment

Leave a comment