RSSCategory: Commentary

Stock Market Continues Test of Critical Support Level

Stock Market Continues Test of Critical Support Level

| January 30, 2016

Chart analysis is one of the most widely misunderstood forms of financial market forecasting. It has been around for centuries, and Charles Dow, the founder of The Wall Street Journal and creator of the Dow Jones Industrial Average, was the first prominent chart analyst in North America during the late 19th century. He realized that [...]

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Stock Market on Verge of Crash

Stock Market on Verge of Crash

| January 27, 2016

Last weekend, we noted that the cyclical top in the stock market had entered an important phase of its development. The massive distribution pattern that has been forming since 2014 indicates that the cyclical bull market from 2009 likely terminated in July of last year. The potential cyclical downtrend from July is testing critical support [...]

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Stock Market Cyclical Top Develops as Expected

Stock Market Cyclical Top Develops as Expected

| January 23, 2016

Last June, we observed developing weakness in the historic stock market bubble that suggested the bull market from 2009 had become susceptible to a long-term reversal. Following a long-term breakdown in August, the S&P 500 index rebounded violently and approached previous highs of the cyclical uptrend. However, after a period of mutual fund window dressing [...]

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The Stock Market Bubble Bursts

The Stock Market Bubble Bursts

| August 24, 2015

Since early June, we have been monitoring developing weakness in the historic stock market bubble that suggested the bull market from 2009 was becoming susceptible to a long-term reversal. In early August, the Dow Jones Industrial Average (DJIA) experienced a confirmed long-term breakdown when it moved below support at its 200-day moving average. Last week, [...]

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Dow Jones Industrial Average Confirms Long-term Breakdown

Dow Jones Industrial Average Confirms Long-term Breakdown

| August 7, 2015

For two months, we have been monitoring developing weakness in the historic stock market bubble that has suggested the bull market from 2009 is becoming susceptible to a long-term reversal. In late July, we noted the formation of negative divergences between the major stock market indices and this week the Dow Jones Industrial Average (DJIA) [...]

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Stock Market Indices Exhibit Divergent Behavior

Stock Market Indices Exhibit Divergent Behavior

| July 25, 2015

For two months, we have been monitoring developing weakness in the historic stock market bubble that has suggested the bull market from 2009 is becoming susceptible to a long-term reversal. The short-term breakdown in early June was followed by a quick move down to long-term support at the 200-day moving average in late June. That [...]

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Stock Market Cyclical Bull Rebounds off of Critical Long-term Support

Stock Market Cyclical Bull Rebounds off of Critical Long-term Support

| July 13, 2015

We have been monitoring developing weakness in the historic stock market bubble that has suggested the bull market from 2009 is becoming susceptible to a long-term reversal. The short-term breakdown in early June was followed by a quick move down to long-term support at the 200-day moving average in late June, and that critical support [...]

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Stock Market Closes Below Key Long-term Support Level

Stock Market Closes Below Key Long-term Support Level

| July 8, 2015

Since early June, we have been monitoring developing weakness in the historic stock market bubble that has suggested the bull market from 2009 was becoming susceptible to a long-term reversal. The confirmed breakdown of the bearish rising wedge formation on June 8 was followed by a quick move down to the 200-day moving average, and [...]

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Stock Market on Verge of Major Breakdown

Stock Market on Verge of Major Breakdown

| June 29, 2015

In early June, we noted that the historic stock market bubble had begun to exhibit early signs of weakness, suggesting that the bull market from 2009 was becoming susceptible to a long-term reversal. Two days later, the short-term uptrend experienced a meaningful breakdown when the S&P 500 index closed well below support at the lower [...]

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Stock Market Cyclical Bull Begins Important Test

Stock Market Cyclical Bull Begins Important Test

| June 21, 2015

In early June, we noted that the historic stock market bubble had begun to exhibit early signs of weakness. At the time, our computer model predicted the imminent formation of the latest short-term cycle low (STCL) and intermediate-term cycle low (ITCL). As expected, the STCL formed on June 9 and the ITCL formed during the [...]

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