All indices I cover has now moved into the September month. This market sure seems like it doesn’t want to quit until a new record high is established.
With this DOW an expanded pattern started to form back in May 2019 when the impulse started to fall apart. At the June’s bottom, the Nasdaq and the SP500 created a perfect H&S while this DOW rolled over and created just a single bottom.
This futures chart is not manipulated and we can see big gaps when activity was still rather weak. You can bet that investors are waiting for some report or announcement but that happens 24/7. They are all hoping that the trade war will end, so any bad news could send the markets reeling.
If this is another last hurrah then this market could make a radical jump even from this level. What many do not see is the huge H&S top just about 1-year-old. That can be a huge resistance factor even if the DOW charges up to 27,000.
The Gold/Dow ratio has not changed all that much and is sitting at 19:1, Expensive is about 21:1 so not until this 19:1 ratio gets chopped down in size can I turn super bullish again.