Summary: Continue to maintain a LONG position.
Even though I am BEAR, I am not the dumbest bear in the woods. The economy and the stock market will fall apart soon enough, yet for the time being we cannot ignore the technical picture of where the market is going. Doing so would lead to capital losses for my clients and myself.
As such and with the market sitting near all time highs I maintain my “HOLD” position for the DOW if you are long. Technically speaking nothing really happened this week. The market did give up some gains but that is to be expected after 900 point rally from August lows. There is a open gap in the 15000-15100 range and the market might go that low in order to close the gap. Overall, the long time chart remains strong and bullish.
From a bearish stand point we continue to wait for an indication or a confirmation that the bull market that started in March of 2009 is over and the bear market is back. If no such confirmation surfaces over the next 6 weeks I would have to shift my DOW TOP forecast to the next inflection point occurring in March of 2014. For now we wait while maintain a LONG position.
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