What to Watch for Ahead of Friday’s Close

Wednesday’s rally fizzled about midway into the session, giving us good reason to exercise caution as the week draws to a close.  I would be even more careful if the Dow’s finishing stroke on Friday leaves it in record-high territory.  Because it would take but a 150-point rally from current levels, it’s possible it could happen even if there’s not much buying power in evidence.

  • none August 17, 2017, 5:52 am

    The McClellan Oscillator had close under -200 level this suggest a 6-8 week correction in breathe (advance/decline line is ‘liquidity’), this does not always suggest extreme price correction at 1st. At times an internal correction will take place this is called a ‘shot across the bows’ with weak pricing and very low volume.

    More important the Dow Jones INDU had created at the last INDU high a non confirming high, a Dow Theory non confirmation.

    The Dow Theory does not gave buy or sell signals it suggest ‘primary trend’ changes only.

    The non confirming TRAN to INDU high is inline with the 10/01/2017, 08/23/1999, 01/10/2000, 01/01/1990, 07/16/1990 and 08/24/,1987.

    Primary Trend changes of the Dow Theory is signaling and upcoming change of direction longer term and towards the larger degree.

    Investment flow is continuing to leave the United States as the reserve currency (DXY) has trigger a major sector change in the world wide investment flow. The equity market is loaded to one side of the market, it will be the last flow of investment to shift.

    Breaking the 2.578 TYX (30 year) yield level will suggest a test of the all time low print in yield.

    ****The finial signal will be as towards the long term stat of having a 20 or 40 trading day high point, which starts off a decline of a 4% downward move from a extreme high to low in a 5 to 7 trading day period.

    This will open the barn door.

    Have a great weekend coming up Rick and great job.