Update: $DJI IT/LT “TIMER” No bearish divergences and plenty of bullish technicals out there on some areas of once previous laggards.
FED runs this and this next week we have massive data coming in and especially in regards to the employment numbers. This will determine the “Rate Cut Regime” schedule..which is overdo. They waited too long and it should be realized shortly. That’s clearly been my expectation. I had hoped it wouldn’t take 10 weeks realization from going cash for this to kick in.
The rehabilitation of the bearish divergences that had existed on $NYSE has pushed out a Major Top several months(normally)…but I believe the “Iron Dome” still allows for this on $DJI,… and to stay contained under normal topping “process”. $SPX and especially $NASDAQ well below theirs right now! Why I want to stay focused on $DJI right now right up against it’s here.
I cannot help but think there is a negative 2011 ish type surprise here. Negatively for stocks with a non-divergent top with a sharp slice ahead, … even though it is extremely rare(even had a Whaley in 2011 top)…is still possible based on the way rotation has occurred. But I’ve drawn a divergence to build late in the year-early next year as would be the normal topping pattern.
