Market Talk – July 26, 2024
ASIA: The major Asian stock markets had a mixed day today: NIKKEI 225 decreased 202.10 points or -0.53% to 37,667.41 Shanghai increased 4.16 points or 0.14% to 2,890.90 Hang [...]
Phase Transition v Plateau Move
QUESTION: Martin,
I am looking forward to attending the WEC next week in Orlando.
I have a question about the ECM, stock market alignment, and a phase transition.
I noticed that in a blog in 2014 you noted that a phase transition is usually 52 to 59 weeks. I also noted that the U.S. stock market was out of alignment with the ECM for 3 segments, up until last October 2016, when it took off, finally re-aligning with the ECM.
I am wondering if, with the ECM turning down on 11/24-11/15/17, if the U.S. stock market could potentially follow the ECM down into 2020?
Was the last 52 weeks the phase transition you were looking for?
I know you have been forecasting much higher highs than 23,700. Does the (ultimate) phase transition need to occur 2018-2020 or could it be delayed?
Many thanks for all you do.
BT
ANSWER: We have most likely extended the entire process when we passed the 97-month mark last April. The entire Roaring ’20s was only a 97-month bull market. That means we can move to the second type of Vertical Market which I call the Plateau Move. This is dealt with in detail in the report on How to Trade a Vertical Market. We will also be focusing on this at the WEC.
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