The market has been very strong for the past 60 plus days. There is a chance that the current 30 day base is a distribution pattern and the market will correct near the 90 day mark. Another signal that points to this is the 218 days cycle. I was hoping that this would be a low but it appears to be a high. The 218 cycle has been very strong since 2002 and caution is to be used until it is obvious that the market has broken out to the upside (assuming it does).
An obvious place for support for a correction would be the 1×4 angle from the 1982 low. Price bounced just above this angle in March and could have some unfinished business to complete.
The market topped at day 63 of the move up from March (also near the long term 218 cycle). The move was 39% which technically makes it a bull market. Anyone want to call the market in a bull mode?
The charts of my Top 100 Growth Stocks look very good. Many are overextended but the looks like strong stocks with strong charts. This is the first time since 2007 that the majority of these charts have looked bullish.
And finally – I’m not much into the fundamentals, but man, even the Russians are laughing at us…
My current guess is that the strong market could continue much higher. But the cycles are against it so I would not get too long unless price breaks and holds above the recent high.
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