Market Direction and Stock Trends

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Very Important Update on the Dow
By Martin Armstrong | August 18, 2017

So far, everything remains on target. The model picked the high to the day and the outside reversal to the downside on the weekly level was a technical confirmation of problems ahead. We got the 3 day correction and then the 3 day counter-trend rally, and then the collapse.It appears we have the temporary high in place and a closing today below 21665.29 technically will be the first time this has taken place since the week of October 10th, 2016 ushering that mild October correction.

Our Daily Bearish Reversals lie at 21565 and 21325. A closing below 21565 will confirm perhaps a sharp decline is underway next week.

The Weekly Bearish Reversal to watch will be 212279. At the time of this post we are trading at 21690. If we can elect this Weekly Bearish, it will confirm that we should get that correction which should create a bear trap and we hopefully will hear scads of analysts proclaiming "see I told you so" sucking in everyone for the trap.

It appears we have the shift in trend and this high should hold now for the month. Key weeks ahead will be those of 09/11 and 10/02.

So far the model has performed its duty getting us out and on the right side this time even to the day. Let's pay attention of the next few weeks to see if this indeed unfolds as a bear trap and opens the door to a buying opportunity to flip position back to long. Keep in mind, however, there remains the risk of a giant slingshot of historical proportions and that would be indicated by a low in early 2018 and then a blast up from there which may carry us into 2020 or beyond.

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