Professor’s Comments November 25, 2015

Posted by OMS  at November 25th, 2015

The Dow rose 20 points, closing at 17,812.  Volume was moderate, coming in at 99 percent of its 10-day average.  There were 63 new highs and 68 new lows

Yesterday’s early decline of 108 points followed by the late afternoon recovery rally combined for over 225 Dow points.  It was the Big Move predicted by Monday’s small change in the A-D oscillator.

The pullback in the Dow only reached a low of 17,684, not quite the 17,600 level I was looking for to establish the long trade I mentioned in yesterday’s Comments.. But because the pullback was weaker than expected, it tells me the next wave up will likely test and exceed the Ending Diagonal high of 17,978 established on 11 November.

Yesterday’s pullback caused a small Hockey Stick pattern to develop on the Dow.  If this pattern extends for another day or so, the ‘Blade’ of the Stick will become even stronger and act as the springboard for a re-test of the 20 May highs.  Right now if the ‘Stick’ is measured and added to the recent low, the small Hockey Stick pattern projects a move to 18,388.

I do not expect this move to be straight up.  If yesterday’s early decline was the completion of wave ‘2’ within final wave ‘E’ up, the Dow should now rally to about 18,100, then pullback in a wave ‘4’ before retesting the May high of 18,350.

All of the cockpit indicators, including the Dean’s List, Tide, and Money Flow indicators, are supporting higher prices.  The two patterns I currently have on the Board also suggest higher prices with targets of 17,978 and 18,388.  As long as the Dean’s List, The Tide, and Money Flow remain positive, it’s likely that at least one of these targets will be reached.  However please remember that IF these targets are reached, it’s likely they are the completion of Major Bearish Patterns.  Please trade cautiously.

BTW, I have been running The Professor algorithm for the past few days to see if he sees a major trend starting.  So far, the most longs he has highlighted is 32, which is less than the 50 needed to start a major trend.  Last night he only had 7 longs. So while The Professor continues to maintain a positive bias, it’s likely that the move higher will be choppy rather than straight up.

The markets will be closed tomorrow for the Thanksgiving Holiday.  They will also only be open for a half day on Friday.  Because of this my next update will be in this weekend’s WSR.

Happy Thanksgiving!

That’s what I’m doing,

h

Market Signals for

11-25-2015

Not sure of the terminology we use? Check out these articles

The Hockey Stick Pattern
The Creation of Waves and Trends
FAQ

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