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>>> ALERT: Dow & November 2017 <<<
By: Marty Armstrong | November 27, 2017

The now made a new high today but is crawling higher against our second target resistance we gave back in 2010 which was 23,700. To be precise, that resistance this week stands at 23,770.39-23,776.30. This is primarily the closing resistance barrier. There is some intraday resistance slightly higher at 23,899.71. The breakout resistance stands at 24,148.06. In other words, that is the point where the market could break-through and begin to run.

There has been a steady inflow of European capital that according to our sources reflects the deep concern over the political crisis in Germany. The SPD may yield fearing that they will lose even more power to the rising AfD. That is the best hope to keep Merkel in play and that is the entire support behind the Euro. The smart money sees the handwriting on the wall with the Italian elections coming up. Then there is the crisis in the budget developing in Spain. All of this puts pressure on capital asset flows, and it is also starting to weigh heavily of fixed assets like real estate. The high-end market is coming under pressure just about everywhere.

We must be careful here for this week is the turning point and a Directional Change. With the ECM turning on the weekend targeting really the fixed asset class, caution is duly advisable at this time. The Directional Changes on a daily level begin to come in on Wednesday and peak on Thursday 30th. The highest daily closing remains last week, created on the 21st.

Support lies at 23500. A daily closing below that will signal that a retest of support is likely. A weekly closing below 23250 now will signal a correction is unfolding. The major support lies at the 20990 area and only a crack of that level on a monthly closing basis will signal a more sustained correction is at hand.

Using our long-term database for the Dow back to 1790, we see 2018 as a Panic Cycle Target year. Clearly, only a December closing below 19987 would warn of a major sharp correction in early 2018, which would then probably flip back up going into the end of 2018. Our models are showing that 2018 is the start of real chaos, which should extend then into 2022.

• DiscoverGold

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