Finally the DOW made an outside reversal week on 10/05/2018. This is the start of the seasonal correction. It is 14 weeks into the current weekly cycle that was started on the week of 06/29/2018. This correction against the January 2018 high does appear to be a selling off of a double top.
The market continues to be resilient. The DOW had an inside bar last week on the 13th bar. The cycle oscillators are turning down signaling an upcoming mild correction. Underneath the general market, the banks and housing sectors are really weak.
While the Nasdaq took a little break last week, the S&P 500 and DOW were charging ahead despite this and that scary headlines. Underneath the toppy looking indices, there are great many small caps are breaking out and entering a fast growing phase.
The big data and cloud based subscription service sector is on fire. This is a relatively new field. Although the big guys such as AMZN, MSFT and GOOGL have a lead, but the new players are continuously showing up.
