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The Dow & a January High
By: Marty Armstrong | January 31, 2018

We have warned that the turning points were November, January, and March. If we exceeded the November high, then a run-up into January was likely. Now we have reached the period at where a turning point has arrived. The Weekly Bearish lies at 24696 and now that everyone is starting to get bullish, we reach the point where the market can toy with them or simply run away to the upside. Keep in mind that toying with everyone here in 2018 will be a sign of extending the duration of this bull market which is a reflection of what is unfolding on the Sovereign Debt Crisis in conjunction with the Monetary Crisis Cycle.

We wrote: "In the US Share Market, this is now a turning point we have reached. I have warned for months that exceeding the November high would lead to a January high. Now, the failure of February to make new highs warns of a March low. The support for a correction now lies at the 25637 level on a weekly closing basis (this is not a reversal). We will elaborate today on the Private Blog."

Indeed, this is the 3 week moving average of the lows which lies at 25637 and is above the Weekly Bearish Reversals. This means it can be easily faded. We still must look to the Reversals to guide us as to any correction on a sustainable basis.

We have elected one Daily Bearish Reversal so far and the next lies at 25941 followed by 25307. A serious correction would only be indicated by a closing for January below the December low of 23921.90. Nevertheless, a closing for January below 25678 will also signal a brief correction is possible.

We have turning points coming into play the weeks of 02/12 and 02/26.

A low this week can still be followed by a bounce into the week of 02/12 and then down again into 02/26.

The market will either scare everyone, or run away to the upside. The only fundamental that will matter is confidence and that will turn around the Impeachment issue. There are still Republicans hell bent on destroying the Trump Presidency and at the top of the list is Lindsey Graham. This is the guy with the rumors in Washington that he allegedly flies often to Paris where he has his homosexual lover stashed away and if that was ever proven to be True, South Carolina would send him packing his bags real fast. Barney Frank was gay, but representing Massachusetts was acceptable because the people knew it. South Carolina tends to be a strict religious state and that would not be acceptable.

Lindsey Graham is also against Trump on Global Warming and says he should join the Paris Accord. This has been a very dangerous guy and he is also the author of allowing citizens to be imprisoned without lawyers or trials if the government even accuses you of being associated with terrorists. Denied a lawyer or a trial means you cannot challenge what the government accuses you of doing in the first place. He is a very evil person who I rank as completely distrustful.

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