Chemist72, We need to be concerned about a pause in the uptrend. The indicators held in a Bullish posture at the August low, which was the indicator that there was not going to be any follow-through to the downside.
There is a turning point in 2 weeks. This can be a cycle inversion unfolding as a rally rather. Then exceeding this week's high next week would signal a sharp rally is possible. Then we get closer to a projected resistance at 23700.
Trump wants to eliminate the estate tax, which is levied on the distribution of property as it passes from deceased persons to their heirs. Of course the critics are yelling this could save the Trump family as much as $1.4 billion. Keeping with that logic, one would guess it is a good day to die before the Democrats get back in. What they ignore by focusing on Trump is that we have big farming today because of the estate taxes have resulted in farmers being forced to sell land to pay inheritance taxes and small businesses closing because the tax must be paid at the expense of workers who lose their job.
Trump's initial plan would also help small business who provide 70% of all employment. The "pass through" tax on small businesses at 25%, instead of the income tax rate their owners would pay often 39%+ reducing job growth. Most U.S. businesses are taxed under their owners' individual income tax rate instead of the corporate rate.
All of these proposals will have a tremendous impact upon the US share market providing the backbone for the rally which has resistance at 23000 area which is capping the market right now. This is followed by a gap to 25650 area and 28000 for next year and 32000 by 2020. A full blown rally into 2032 is possible and there our target become 61608 on the Dow. - Martin Armstrong
• DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
