The model on a weekly basis worsened slightly. As I explain in the video, I don’t see this as particularly significant at the moment, as we approached the most significant level for 2019 and duly backed off.  What could be significant is that it refuses to go positive with market strength. It enables the moving averages to converge downwards at a lower level which will enable a more powerful thrust in the medium term and a stronger trend to eventually emerge.  If the market now cannot drop below 2750, we will be in a position to slingshot higher. A big battle is raging between Risk On and Off and we are witnessing it daily. We will take it one day at the time, but failure to crack 2750ish will be a longer term tell.

A video of my detailed expectations for the near term, with important levels to watch, can be viewed at https://youtu.be/jOZbpW0Og7U

 

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