BROAD STOCK MARKET UPDATE (11:30 pm EST)
The broad stock market has been relatively flat this week and seems reluctant to roll over. We are in a very weak reversal zone that ends tomorrow, and perhaps that weak downward force has been no match for the current bullish trend in equities which is keeping this market buoyant. Today the DOW managed to edge up to a new weekly high, but the S&P 500 and NASDAQ are still below their highs from last week, and that gives us another bearish divergence signal. The current medium-term cycles in all three of our indices are ripe for a significant correction If they don't turn down this week, there is a very strong reversal zone coming up next week (Nov. 12 - 21), and that may do the trick - especially if we see more bearish divergence between the indices. If this market does turn down now, we may also see a corrective bottom inside this new reversal zone and a possible spot to buy. We remain on the sidelines as we wait for that significant correction.
The broad stock market has been relatively flat this week and seems reluctant to roll over. We are in a very weak reversal zone that ends tomorrow, and perhaps that weak downward force has been no match for the current bullish trend in equities which is keeping this market buoyant. Today the DOW managed to edge up to a new weekly high, but the S&P 500 and NASDAQ are still below their highs from last week, and that gives us another bearish divergence signal. The current medium-term cycles in all three of our indices are ripe for a significant correction If they don't turn down this week, there is a very strong reversal zone coming up next week (Nov. 12 - 21), and that may do the trick - especially if we see more bearish divergence between the indices. If this market does turn down now, we may also see a corrective bottom inside this new reversal zone and a possible spot to buy. We remain on the sidelines as we wait for that significant correction.
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