Dow Caution Is Necessary

Posted by Martin armstrong - Armstrong Economics

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The Dow Jones Industrials rallied sharply with the Fed starting to taper. We have a near double top but today was a turning point and this week was also a target for a Panic Cycle which seems to be on point. However, while the market remains strong long-term, there are signs of some exhaustion starting to creep in. I the Dow cannot break to new highs and close higher tomorrow, we may still move back to retest support for Jan/Feb. A low at that time will point to a rally into the end of summer. A high in Jan/Feb in the 16650 level, could warn of a decline into that period with a rally into 2015.75. But a low, may signal the Cycle Inversion is developing now. That will warn of a very serious period between 2015.75 into 2020.05. TIMEremains constant. Events and Price are the variables.

Ed Note: I posted this chart below, not Martin, to reveal the Jan/Feb lows he is referring to:



…more from Martin: Fed Tapers Letting As Always the Lame Duck Do the Job