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ALERT >>> The Dow - The Vertical Market Explosion
By: Marty Armstrong | November 30, 2017

We warned that the market was being boxed in cyclically and it would either fall back to create a bear-trap or it would invert and start to run away. All the domestic fundamental analysts have been constantly wrong because they are still trying to analyze this from a purely American perspective. They are clueless as to the real implications taking place.

We showed that the Dow was breaking out on the Monthly level using the simple Uptrend Channel construction. The Breakout Channel construction top stands at 32,000 currently. Offered here is the Weekly Breakout Channel and you can see that the resistance stands at 25,078.61. The 25,000 to 26,000 zone is the next resistance area. But make no mistake about it, we are dealing with the rare even of a Vertical Market. We can see that even our Energy Models are by far no at a point that warns of a slowdown.

There have been many people who refuse to accept what we have been warning about with Europe and the fate of the dollar. A storming rally in the dollar will only entice even more foreign investment inflows. Here is the DAX. In this case, here is the Breakout Channel, which is substantially different from the above picture with the Dow. We have the Dow breaking to new highs with this Directional Change this week and the DAX cannot muster a rally. WHY? This is yet another indication of the shift in confidence away from the EuroZone.

All the American analysts who said buy Europe because the USA was overpriced, are getting their face smashed into the sidewalk. Here is the DAX in dollars. It was above the Breakout Channel during the first quarter and then crashed and penetrated the bottom. It tried desperately to rally back with expectations of a Merkel victory, but reality has set in and in dollar terms, the DAX is breaking support once again.

Here we have the Dow in Euro. The top resistance in just the Breakout Channel stands at 21,403.61 in Euros and we closed today at 20,397.32. Clearly, we have not yet reach the breakout point for the Dow in Euros. Then that happens, then we are probably heading to the 32,000 level.

Our Daily Array for this week show today was the biggest target for Volatility and that has come into play. While we can still press higher tomorrow, what is happenings is simply the way the reversal system operates. We mentioned that 23500 was then an important (near double) Daily Bearish Reversal. The market resistance was 23770. So either the market fell back and ELECTED the Daily Bearish at 23500, or he was compelled to blast to the upside to provide more room.

The TOP of the Monthly Uptrend Channel rested at 22583. You either fell back and encouraged all the shorts, or the market must enter a VERTICAL phase that just runs away and eventually compels people to start throwing in the towel and just buy.

We must respect that exceeding the November high now in December on a sustained basis, points to a January high.If we pull back, then January will be a low and then watch-out for a sharp rally into March.

Obviously, we will have to put out a special report in January on the Share Markets.

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