While Everyone Is Looking up – It Appears to Be Time to Look down for Quite Some Time to Come

At this time, despite just about every analyst, save a few, that we are aware of looking for new highs, we wish to point out that the risks appear to be to the downside well into next year. Just as the rally from August fooled the likes of high-profile analysts such as Tom DeMark, who expected the market to drift down through September and into October, and the abundance of wavers looking for fifth wave lows below 1825 - we do not expect that the market will want to be any more obvious for anyone than it was in August. However, as can be seen in the left translated market structure projection shown in blue on the chart below, while the persistence and lack of pullback of this move may have been a bit of a surprise for this analyst - the move itself, followed our general expectations nearly perfectly.

The implications of these projections are significant in that the next week or two are large potential inflection points for many markets. These inflection points are likely to carry weight for many months to come - not to mention disappointing the abundance of analysts and market participants looking skywards. Below is an updated market structure projection chart and we are now knee-deep in the turn window inflection point.

Also, please note that the BEAR IMPULSES PREVIOUSLY DISCUSSED ON THESE PAGES ARE STILL WORKING AND HAVE BEEN SO FAR ONLY BEEN RETESTED. The implication is that until these bear impulses fail, the larger direction and risk for the markets is down. We expected a retest in the 2060's  vicintity/area was a probability given the norms for impulse structures to retest their breakdown points. However, on the weekly charts we have overshot somewhat the impulse breakdowns by a little bit - although it has barely visible on our weekly charts (charts in a post we will publish tomorrow)...the impulse retest has indeed provided resistance to the ES futures and is a very good point for the market to do some soul search and to rediscover and begine the next phase of its larger bearish if it wishes.

We sent out an alert last night to members informing them and reminding them of the gravity and potential of this inflection point and also of the shorts that systems were triggering the close yesterday.

Daily and Weekly Market Structure Projections

Daily and Weekly Market Structure Projections

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