Difficult as it is to imagine the stock market turning even more boring this summer, the chart shown suggests seasonality’s most tedious days and weeks may lie ahead. Trend legs that surpass at least two prior highs or lows are usually prelude, following retracements, to strong rallies or declines. In this case, however, every promising such move up or down has been met with another going in the opposite direction. This is what I call ‘dueling impulse legs’, and they are rampant on DIA’s daily chart. This doesn’t necessarily mean we should set the snooze alarm for autumn, when vacation revelers typically return to their senses. Indeed, so very interesting are these times that we can never be dismissive of the possibility that the bear market we all know is coming could come a-rampaging overnight.
