The DOW is being pushed to the limits of what wave 2 rallies can do so only a clear push to new record highs will kill it. Otherwise, it is primed to fall and start to close 2 of the big caps open below present prices.
Besides being an unlucky Friday 13th, we also have a full moon today which can be a turning signal as well. With 2 open gaps that makes it about 4 bearish signals that I use, which most analysts ignore as they are to busy chasing fundamentals which change as fast as the wind.
Any drop in the DOW will bring out the bearish news and we never know from what country it will come from.
Record high prices don’t reflect that a recession is here already, even though we can see the world economies are slowing down.
It’s a “Sit and Wait” situation at this time, but next week should tell us more.
The Gold/Dow ratio is still very expensive as it was 18.3 today from the ratio of 21:1, we have a long way to go before the DOW becomes cheap again at 7.19 where it only takes 7.19 ounces of gold to buy one unit of the DOW.