Good evening everyone,
Another week in the books for 2016 albeit a quiet one relative to election week. The preferred ending diagonal count that we've been tracking has came into contact with the last remaining declining resistance in this past weeks price action and continued to press on it into Friday's close. The week of Thanksgiving is historically a positive week with 65% odds of a higher close than open since 1950. This fits with the long term MSP expectations as well as DJIA seasonality.
This week also produced a rather rare triple inside daily pattern on the DJIA. These patterns lend themselves to a rather dramatic move upon completion, and while seasonality and MSP favor a positive bias, expectations are for this pattern to complete itself with an upward thrust.
Move evidence of this is apparent in the Election Year chart for seasonality where there is one last solid push higher into the last week of the month, and there is also one for the overall average chart but it is pushed forward in time by about a week and a half. While expectations are for higher prices, we are getting near enough the turn zone to warrant some caution and to begin to look for signs of a turn. Good luck this week and happy Thanksgiving.