One of these days we will have a Major knee jerk downwards, but for now we still have the Bulls frustrating the Bears with their Sound of Music!
The Market Indexes have been sluggish for four of the last five days, but all it took was yesterday to dull the hopes of the Bears one more time:
The Russell 2000 (RUT) stays on a consistent course and now the clue to when the breakage may occur is so simple from this trend line being broken:
The Canaries have also given the clue of topping action, but has now singled out the Leader as GOOG:
Now for a Summary of 2013 in a Nutshell as depicted by my good friend and partner, Ron Brown:
It has been a Very Strong Year adding to an even stronger Five Year scenario, which I showed you before, and suggests that the correction is even more likely in 2014. How much will be apparent in the fullness of time. Now for the more recent underpinning picture of the Market in terms of Accumulation/Distribution: Ho-Hum!
True to form, twelve drummer’s drumming is still the predominant periodicity:
…And Finally, the best clue of all of when to play to the upside or not is the VIX Cushion ala Woodward:
A Happy New Year to you all, and just watch the key things to look for as shown above and you should stay on the right side of the Market.