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Market Timing

Sunday, 01 February 2015

The market is at a critical point... 
The daily charts and the monthly charts are both telling us this.  Where the market goes from this "Critical Point" is very important and its anybody's guess.  But, let's not "guess"... let's depend upon MIPS to tell us what to do !!!

In our last blog, we showed what could be the market "topping".  However, we also pointed out that it can take 10 months of "topping" before we experience a big Crash.  What happens in the interim is also very important because a market crash is not obligated to "wait" 10 months to happen. The graph immediately below shows the trading of this crazy, volatile market in the last 2 months.  It can be looked upon simply as erratic, but we see a "pennant" formation with the SPY at a Critical Point on the bottom edge of the formation (orange ellipse on the top right).  A drop from here could be significant, but it would not necessarily mean that the drop would have to be the real "biggie".

Now let's look at the price action of the DOW from a monthly viewpoint from 2000-2014 (graph below).  This shows another reliable formation that basically says "Whichever way the market (in this case, the Dow) breaks out from here will most likely define its direction (up or down) for some time to come. And, as you can see, the market is almost 100% at that Critical PointThe next few days/weeks will be CRITICAL !!!

Stay tuned, and keep watching the MIPS signals.  Remember, the market could break up from here and resume its powerful, six-year bull trend.  But, if (or when, to be more accurate) the big drop comes, MIPS should call it in ample time for us to make sizeable gains in the crash.

Posted by: Dr. G. Paul Distefano AT 12:50 pm   |  Permalink   |  Email

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P.O. Box 691047
Houston, TX  77269

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