Tuesday Update: Heads-Up

 

As discussed in many of these updates over the past month, there are a slew traditionally reliable pattern recognition measurements pointing toward a hard turn down from about current levels. It can come this week, next month, or even next year. Make no mistake, if history is any guide at all, it is coming.

Nonetheless, we will not go Short unless and until our trading models say so. We base general directional trend solely on the Dow Jones Industrial Average, which coincidentally has been the strongest of all major averages. It is also the narrowest. Below are two of the broadest market averages, the NYSE and Russell 2000 indexes. They are both much closer to reversing Short than the Dow. Note that the trend regression channel has already detected a new downtrend in the Russell. 

We will be watching these two indexes closely over the coming days, and if they reverse Short will consider it a heads-up that something more substantial if finally about to hit the market. 

The Trading Tables will be posted later today.