We were watching the S&P 500 2478 target very closely. It made a high @ 2477.62 on the 10th day on 07/20/2017 in the 4th daily cycle. It was also in the 13th week in the weekly cycle, that is well within the top timing band in terms of the weekly cycle. It’s too soon to tell if this 2477.62 high is the top, but Bloomberg has published an article about the out flowing funds from SPY and the US market is the most expensive relative to the other markets. We advise our readers to be cautious about the current condition. Even if the 2477.62 high is the high as we expected, we can not short the market right now because it needs a period of time for the market to weaken its internals. The market can go sideways for a few months before a sharp selloff.
It’s prudent not to open new positions (big caps that are tied to the indices) that might be adversely affected by the general market selloff. Normally the seasonal high is made after the 2nd quarter earnings season if the earnings are not the concern of the market. We will have major earnings reports next week and it may not be able to push the market higher. Microsoft had a great earnings report last week, it failed to juice up the stock. We at PricenTime only hold special situation stocks open. We have liquidated all of other positions that are tied to the general market conditions. Get out while you can, not because you have to.