Our research now shows a very strong rally setting up for the broader markets through the end of September. After ten days of very tight upper channel consolidation for the DJIA between 17,000 and 17,150 we’re now expect a convincing breakout move into new record territory. Once into new higher record territory we’re expecting a move up to 17650 -17800 by the end of September into early October. This now pushes out any possible retest of 200 day moving average into late October or early November. The other possibility is we get a more parabolic melt up of the broader market averages and the 50 day moving average will be the lowest downside support until early next year when a the much larger deeper correction Wall Street’s been anticipating for sometime will commence. Our research cycles clearly show this 20% + correction beginning sometime early next year and lasting through early 2016. This is based on our cycle analysis of the entire history of the DJIA over a 120+ year period. Understanding the entire 120 year history of the DJIA helps us better forecast the next 10% move or 20 year period.
This coming week we’ll broaden our strategy beyond the 3 to 10 day short term stocks and offer many additional alerts to hold into the anticipated strength of the month of September and into the end of the year. Although we expect strength over the next three weeks we’ll remain on the cautious side looking for any possible weakness or sudden change of direction in the broader markets.
For more of our great forecasting and market calls please review our previous broader market research updates and Chat commentary timelines via our Tradereversal APP and or within our blog section at Tradereversal.com
Have a great week.