BRIEF COMMENT ON THE BROAD STOCK MARKET (2:30 pm EST)
As I suspected/expected, it looks like the broad stock market is shrugging off the Democrat's impeachment of President Trump as all three major indices (DOW, S&P 500, NASDAQ) leap to new all-time highs today. We are "breaking out" of our previous reversal zone (instead of reversing) and now moving into our next one (Dec. 20 - 30). This means we should still be on the lookout for a top and subsequent correction. One sign of that would be intermarket bearish divergence where one or two, but not all three indices make new highs. We will watch for that next week or even the following week to cover our long position and possibly sell short. We are currently long in the broad stock market.
As I suspected/expected, it looks like the broad stock market is shrugging off the Democrat's impeachment of President Trump as all three major indices (DOW, S&P 500, NASDAQ) leap to new all-time highs today. We are "breaking out" of our previous reversal zone (instead of reversing) and now moving into our next one (Dec. 20 - 30). This means we should still be on the lookout for a top and subsequent correction. One sign of that would be intermarket bearish divergence where one or two, but not all three indices make new highs. We will watch for that next week or even the following week to cover our long position and possibly sell short. We are currently long in the broad stock market.
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