The broad stock market has been falling since that important reversal date on Jan. 6 when both the DOW and S&P 500 made new all-time highs (the NASDAQ made its all-time high on Jan. 13); however, the fall has not been steep, and the market's correction has been very minimal (so far). Wall Street seems to like Donald Trump very much, and today investors don't seem that enthusiastic about "selling the news" following his inauguration on Friday. (At the time of this writing the markets are only slightly down). Could stronger selling kick in over the next several days? Maybe, but we are now in the center of another reversal zone (the pivot point could be Wednesday/Thursday) and the markets are falling into it. The S&P 500 and NASDAQ are making new weekly lows today while the DOW is not so we have a potential case of bullish intermarket divergence in this reversal zone. The current cycle patterns also allow for a significant bottom now. Even though the current reversal zone is not as strong as the last one in early January, the bullish "Trumphoria" factor could give it extra strength in this current set-up. For all of these reasons, I am going to cover (unload) my short position in the broad stock market today. We should have at least a small profit on this trade that we entered (shorted) on Jan. 9. If the bullish intermarket divergence between these indices persists into the end of the week (i.e. if the DOW does not make a new weekly low), I may consider entering a long position in the broad stock market. Stay tuned.
I will comment on the other markets later this evening.