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>>> ALERT: Dow & the Vertical Market <<<
By: Marty Armstrong | November 29, 2017

The mere fact that 23,700 has been a solid barrier is extremely important. Yesterday, the market exploded bursting through that barrier warning that we are indeed in a VERTICAL MARKET scenario. This means at some point it would be nice to see a retest of support, which would be a fall back to the top of the channel illustrated here on the Monthly level resting at 22,583 this month.

Given the fact that we have blasted through the 23,700 number only after the ECM turning point on the weekend, is also a warning that which the high-end real estate market has peaked with that turning point, the capital flow is shifting from FIXED assets to MOVABLE assets the first week.

Ideally, this week should form a turning point. The Directional Changes on the Daily level begin today and peak tomorrow. The market now has a choice. We either get the pull back and create a bear trap, of we simply move into a Cycle Inversion, which is common in VERTICAL MARKETS.

A Cycle Inversion simply means that what should have declined flips and invests into a rally. The turning points are the same, they simply produce successive highs. This would be indicated if we continue to see new highs AFTER this week. Then if 2018 OPENS above the 2017 high, as they say, all hell will break lose.

That support on a Daily closing basis is terribly important now at 23500. A close below that level will see a retest of support. As long as that level holds, then we can still press higher.

The resistance stands at 23,899.71 and we reached 23,849.61 yesterday. Our technical projected resistance for today stands at 23,935.11 and 23,956.52 with support at 23,789.11 and 23,653.72. This is the trading range for a NORMAL market. Breakout out of the top warns we can still press higher and breaking 23,652.72 would then point to the test of 23,500.

We are dealing with an extremely dangerous banking crisis in Europe that is wrapped up in a political crisis. The greater the external chaos continues, the more mad rush we will see into equities. Keep in mind this is parking money FIRST. So PE-Ratios and fundamental scenarios all fail.Because so many remain bearish, the market can easily trap the majority by simply running away causing them to eventually throw in the towel and buy the high because they do not understand what is taking place.

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