NEXT WEEK IS THE WEEK
We are still in a range. Only now we happen to be testing the bottom end of that range. As confusion and sub-par price analysis take hold, causing investors to confuse a continued range bound market with a market that is breaking down, it is time to take a look at what lies ahead over the next couple of weeks.
I will, of course, have a detailed review in my weekly chart segment to be released on Monday, due to the holiday. In the meantime, let us comb over the Dow with an eye on next week as an important cycle turn date. This comes from my own cycle analysis. It's not based on any Gann, Fibonacci, Elliot Wave or the various other types of cyclical/price studies.
It should be noted that price analysis is always subjective in nature. There are no absolutes. What has worked and taken on the utmost importance over the past several months or years could fall flat on its face in the years to come. I believe that what separates the professional from the amateur is knowing when to use what.
It is identical to a battle hardened veteran of war as compared to the untested, unaware soldier. That battle tested veteran knows within a split second what information matters and what tools to use as a result of what becomes natural reaction resulting from repetition. The untested amateur meticulously studies the situation, relying on learned book knowledge, as opposed to essential experience that has come from real battle.
At this point in time in the market, the cycle that takes place next week means more than the trajectory points that are containing the Dow.
click chart to enlarge
DOW
