2017 has been devoid of all seasonal patterns, will 2018 follow the seasonal pattern?  Certainly 2018 has been a lot more volatile, which can contribute to the formation of seasonal patterns.  Normally the stock market has a tendency to top in August thru October. 

The DOW is again the weakest index among the three.  It is showing signs of weakness (the on balance volume has fallen below 21 weighted moving average) before it can overtake the 25800 target.  This 25800 is a reaction high that must be taken before any breakout can happen.  Because it is in August, the normally time frame for a seasonal high to occur, we are highly suspicious of a breakout can happen from here.

When it can close below 24980, it will conclude the weekly cycle top.  From there we can expect it to selloff until September/October time frame to make a seasonal bottom.  11/21/2018 is a Pi target, we are expecting heightened volatility for this period.

We remain bullish from now to 2020 for the US equities.  If you are a long term investor, you shouldn’t be concerned with the short term volatility.  We don’t foresee a recession induced market selloff at the moment.