Market Pulse

Published 8th March 2019 

US equities are showing a textbook setup for an intermediate degree swing high. Sentiment indicators went into clearly positive territory whereas momentum readings diverged. Moreover, a terminal chart pattern leads to a cross-market non-confirmation of the most recent recovery highs. The major indices struck their highs a few days apart, which is typical for larger degree tops.

The analysis in the short-term section below remains valid. The Dow Industrials has to confirm or discard our forecast at this junction. The confirmation path is most likely and depicted in black. A motive wave has to form minor wave A. It will most likely not unfold in a straight line. The important takeaway is that pullbacks are likely. Especially the second wave of minute degree, which is denoted ii(circle), can get scary and retrace a lot of the downside progress within a short time span. However, we would not want to see minute wave ii(circle) exceed 26,050 points convincingly. Trading above that level shifts odds towards other scenarios.

All in all, the black path or something similar to that is most likely. We do not expect price action to exceed 26,050 in the next few weeks.

The analysis above is a historical abstract of our DJIA Premium Analysis. Subscribers can access multiple timeframes, which are not displayed on this page.