MARKET POINTS: by Woody Dorsey:
The Price Highs on 5/20, 6/22 and 7/20 in various indices have traced out a Topping Process. Any further Market developments would be dependent on those Highs being exceeded. Upside tries have continued and downside stabs have been contained. The 94% reading on 8/11 identified the 2105ish area as tactical Resistance. My deduction remains: “The Market wants to go down but is still not able to release to the downside… and stay down, yet.”
Key Support @ 2045 continues to be critical and has held.
The technical tightrope continues to tighten. The Investor Psyche seems complacent as this low Summer Hiatus matures. It also opens the Market Mind to any new overtly cogent concepts. This speaks to latent Vulnerability.
Recoveries remain allowable but become more and more precarious.
Stocks remain on the cusp of the “Kill Zone” when Declining Pressure may begin to become overt. There are actually several indicants for a High this week which I deemed to be coincident with an end of the Summer Distribution profile. Thus, Minor price improvements are allowable here. Be patient. Still, surely, there are no sure things.
MARKET TIMING: A well-defined Top seems to be in place. Unless and Until the Highs are breached, the best timing inference is that Stocks are in a slow motion break down which might ideally accelerate in the weeks ahead. “Kill Zone” set ups occur after Highs are already made. There is still a bit more time for Bounces and Meanders. The 8/14-21 is the potential zone for Downside to Begin. A Low due in Members only should begin to provide that negative pressure.
Repeat: “There are ideally 2 Black holes coming due this year. Maybe one is a Beige Hole and the other one is a Black Hole.” Don’t assume that a Crash is coming. Yes, the Take Away remains that there is more Market Negativity coming due this Members only . However, the double indicant for weakness may also infer a Complex Compound Correction which is actually more difficult to navigate than just a straight down move. Markets are never absolutely defined but there can be High Probabilities. Weakness is due to materialize.
MARKET TIMING SUMMARY: Trade remains strange. Repeat: “Don’t get caught up in minor technical trading.” The very short term is much less important than the profile for Interim Term Weakness due into late September.
The DORSEY Intermediate Market peaked near the price High of 7/20. It is hovering near Neutral. This is signaling complacency more than anything else.
THere are two more black holes coming this year.......Don't be on the wrong side!!!! click on the link below to see what Woody Dorsey has to say and if you want more information