The Dow is finally reaching my target of 31050 reported 10 days ago. This has nothing to do with Biden or the Vaccine news which is what the fundamentalists and media need to hawk to explain the upward movement. Which we all took advantage of the ast week being aggressively long.
This week the Key Target and also my computer projection for an important year end for upward momentum to continue is 31610.40 A new high in January would confirm a pattern for new highs in 2022, if not it will get ugly.
So on the year end level, with respect to time, there remains a prospect of a temporary high since the market has reached my first yearly target being 2019. A closing below my momentum projection of 31610.40 Dow will signal that we have a pull back possibly into the next turning point due in 2022 leaving 2019 as the temporary high. Yet, this market is still holding or Momentum Support level resting at 25040 Dow, indicating the broader trend has not been negated at this moment - Please note this can be now intraday or closing for those of you who ask.
The capital flow continues clearly to show an exit out of Europe. It does matter whether or not Biden win. Of course much still matters and depends upon the final Senate configuration.
With the recent run in the Dow there remains a big hole on the charts between 28900-28495 - Holes always get filled. The quest remains now or after new highs into next week. Please keep in mind I do not have an ECM turning point until December 14th and a huge Panic Cycle sell-off until December 23rd. Regardless the bottom a pull back before the 14th would be 28400/500 Dow as the low.
So once again we have a risk of forming tomorrow. We can have a directional change by afternoon gunning for the hole. Be nimble and prepare to take profits, if not we will see the high into Friday.
So be careful, we could have a possible temporary short term high tomorrow or Friday at latest.
***Apple must be accumulated via credit put spreads and call spreads/back spreads for third week of December*
