Professor’s Comments November 13, 2019
Posted by OMS at November 13th, 2019
Yesterday’s flat market is another sign that the trading we’ve seen for the past few days is more corrective than anything else. Because of this the odds are increasing that any pullback during the next day or so will be stopped by support near the 27,400 – 27,500 level. If this happens, it would mean that the pullback is wave ‘d’ of the Ending Diagonal that started at the beginning of October. It also means that once wave ‘d’ completes, the Dow should rally to the 27,900 – 28,000 level in wave ‘e’ up to complete the pattern.
So lacking any impulsive action, IF the Dow pulls back toward the 27,500 level during the next day or so, the Model will exit its ‘trial’ position in DXD and look to re-establish the position from higher levels.
There were NO CHANGES to the market timing indicators after yesterday’s session.
The Sector Ratio remains strong at 21-3 positive.
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Not sure of the terminology we use? Check out these articles
The Hockey Stick Pattern
The Creation of Waves and Trends
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Category: Professor's Comments