Mini DJIA Intraday Record High Review

Even though this market is pushing all my buttons in the short term, my perspective from a Cycle degree point of view has not changed. We can use any excuse we can come up with to stay with the bullish herd of investors. Traveling as a group makes us feel safe, until they panic, and then it’s every man for himself!

Last night the DJIA topped at a new record of 23,557 after which the DJIA quickly reversed and plunged.  I’m looking for the last high of 2017 where it has to correct deep enough so there is no longer any time left to break another new record high. It could take a downside move for the rest of this month before we know for sure.  The low in October is the minimum just to retrace this potential diagonal 5th wave.  Some spikes don’t show in Line type so most of the time I will double check it.  If we get close to a double bottom with the chart above, then a small expanded 4th wave could also be finishing.

In February Janet Yellen is out, and Jerome Powell is nominated. The changing of the Fed chiefs can produce some uncertainty or unexpected changes in policy, which could just add to the uncertainty that already exists. As much I would like to see any deep correction this bull market can come back with a vengeance at any time.