The DOW closed at 25115.75 on October 31, 2018. This close is sandwiched right between bearish and bullish numbers.
The DOW closed at 25115.75 on October 31, 2018. This close is sandwiched right between bearish and bullish numbers.
As we have stated before that the market is in a 4-year cycle high to low correction phase, we shouldn’t open new long positions. But we do have a rare high tight flag situation that warrants your consideration. This formation is so rare that had succeeded several times in the past during the market downturns.
The damage has been done. It is confirmed that we are in the 4-year cycle high to low selloff phase. A 4-year cycle high to low selloff can last anywhere 3-9 months or 2-3 years. We will get more clarity after the quarterly closing on October 31, 2018.
The DOW had an inside day on last Friday and it was also an inside week. But the DOW was able to close firmly above the 30-week MA while all the other indices closed below it. The market is appearing to be temporarily stabilizing by having an inside week.
The stock market has suffered major technical damages across the board last week. Historically midterm election years Octobers are downright stellar. These Octobers have been a time of turnaround, with 12 post World War II bear markets ending in October, including the most recent, 1987, 1998, 2001, 2002 and 2011. Is the 2018 midterm election October an exception or will it follow the statistic to endow us a year end rally?
