Market Direction and Stock Trends

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==> ALERT: Dow - Euro - Breakout?
By: Marty Armstrong | October 16, 2017

The highest closing remains last Wednesday the 11th at 22872.89. We have made another new high today opening the door to a cycle inversion warning we may still press upward instead of down to reach our ideal target which stands at 23,700 before a correction of any sort. This is why the only way to trade a Vertical Market is by the numbers. We need at least a higher closing to imply further upside right now.

Only a close below 22820 would signal a short-term pause. Any intraday stop should be brought up at best to 22734. Keep in mind that the Weekly Bearish reversals are now all above the 20,000 level. Therefore, the closer they get we either (1) get a correction or (2) the market must run to the upside to create more distance. There is still no indication that we are yet dealing with a major high. There are a lot of people watching who are not in according to brokers we talk to. The potential for the runaway to the upside is intact.

The firmness in the US share market is clearly being applied from Europe. We elected now THREE Weekly Bullish in Euros and the next stands at 19660. A weekly closing in euros above that will warn of a breakout so we need to also pay attention to the dollar.

The capital flows appear to be intensifying into the US share market especially from Europe. The Catalonia incident seems to have shaken the core roots of faith in the EU as it has remained silent against the violence of the Spanish government. In discussions with European clients the view is how can the EU be so caring about human rights with respect to the refugees but then turn against its own citizens who disagree?

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