On Tuesday we witnessed the S&P 500 and the DOW make new all-time highs. What is the significance of this? If you've been following my work and reading our comments then you're probably familiar with the 52-Week New Highs on Friday Rules which go like this:
Rule #1: On a new 52-week high, when the market closes at or close to its high on a Friday, buy and go home long for the weekend.
Rule #2: Exit the long position on the opening the following Tuesday.
Rule #3: If the market opens lower on Monday, exit this position immediately.
Since making their highs on Tuesday, the DOW and S&P 500 have been steadily moving lower and are in danger of closing lower for the week. Doing so would create a "negative engulfing line." A "negative engulfing line" or "bearish engulfing line," as it is some times called, is when the market price action engulfs the previous open and high period for the preceding week or day. If this turns out to be the case for the DOW and S&P 500 and this coming week they both close lower for the week, then the odds are pretty high that a top is more than likely in place. Continue reading "Were The New Market Highs A Bull Trap?"→
Well here we are in the month of December and things can get pretty tricky this month. For this reason, I wanted to produce a video that I thought would be helpful to you during this time.
In my new video I show you the exact points that we’re looking at for a major trend change in the S&P 500. I also point out the exact number that will show an exit point, but not a major trend change, in this same index.
In our last video on the S&P 500 (10/27), we indicated that this market may have topped out for the year. Today's action puts in place a weekly "Trade Triangle" which indicates that a temporary or a permanent top is now in place for this market.
In this latest video, I share with you some of the ideas that I think could potentially come into play for this market. Not only do I have some downside targets in mind, but I also see a pattern that could evolve in the next several weeks which will confirm that we've made a serious high in this market.