I do apologise, it has been rather a long time since my last free report.
The market rises into the dog days of summer out of a volatile consolidation at the important 2700 level with 2018's gappy and choppy character continuing into the summer months with the May recovery superceeded by the June recovery and the more recent advance to 2800 in July.
Each of the declines has projected highs with small T structures reinforcing and overlapping each other. Weakness brings renewed strength as value buyers soak up the relative cheapness of price and this stimulates renewed buying.
As you can see the recent advance is now at a critical juncture with an important initial projection from the recent T structure projecting the current high. We may see some weakness and consolidation here, perhaps even a pull-back. It is entirely possible that the current structure is larger and that there are further highs ahead, and the relative strength of the market hints at this, but we should be prepared for both scenarios.
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Zooming out to a one year chart, below, we can see that the market seems to be in a trajectory that should see it return to the all time high, and beyond, and that the January high and subsequent collapse could now be viewed as an anomaly – as the market moved up too far out of its trend and then dramatically lower to re-set its course.
So, the market is back on course, chopping and grinding higher, each decline providing fuel for the next advance.
Note also that the T volume oscillator in the chart below has recently displayed greater strength, in efffect breaking upwards from the range-bound oscillation and suggesting the possibility of future out-performance and further recovery in due course.
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In the weekly chart we can see that the volatile range-bound action is improving with a weekly move up out of the recent triangulation.
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All in all, an exciting year so far as 2018 continues to bring with it some excellent opportunity and a range that is far beyond the experience of recent years. We should expect it to continue and trade accordingly. This is a Brave New World.
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Regardless of whether the market can sustain its current advance or whether another, perhaps deeper, low is ahead of us, the simplicity of the proprietary price based S/T Signalling System continues to keep us on the correct side of the market, providing a timely Buy signal and a green light, for now.
If you would like to learn more about using the S/T Signalling System please get in touch.
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Be prepared for whatever is coming next, and trade with confidence:
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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.