1 - Per Predictive/Forecasting Model, underlying force continue to favor bulls
2 - Support near the 77.61 handle offers a probable rebound level
3 - Forecasting Model eyes 01 AUG 2016 vicinity as probable timing in rally
4 - Invalidation: Break of 68.99
David Alcindor, CMT Affiliate #227974
- Alias: 4xForecaster (Twitter)
Alias: 4xForecaster (Twitter, LinkedIn, StockTwits)
Signal Service or Private Course - Contact: MarketPredictiveAnalysis@gmail.com
All updates on https://twitter.com/4xForecaster
CMT Affiliate #227974
"4 - Invalidation: Break of 68.99 "
There's A Rotation Underway Out Of Small-Cap Stocks That Could Be Bad News For Everyone
(Source: http://www.businessinsider.com/djia-russell-2000-ratio-versus-sp-500-2013-4 )
Here is an article that refers to this leading indication of smaller caps versus larger ones - And a quote from therein:
Why Small Caps Are Better Than Large Caps
- "To some investors, the underperformance of small caps in the last few weeks is a canary in the coal mine for blue chips and the market in general."
(Source: http://investorplace.com/2011/01/small-caps-beat-large-cap-stocks/#.V29nv6LGDmo )
The correlation I addressed earlier is simply one that is recognized, where the smaller companies (which are not necessarily the riskiest) tend to fold first - I presumed based on the fact that they are in fact less risk-tolerant, since their capitalization implies that they sit on less cash to support staffing and other costs to maintain business. In contrast, the large companies might in fact be riskier, since they have more risk tolerance, and thus are likely to be more obstinate in the face of a market downturn, in which they would tend to fold at a later date, once the losses are posted and the investors are informed much later, than would happen in smaller companies that decide to fold and announce shortfalls sooner - Plus, as mentioned before, there is a perceived ego, being a Russell-2000 vs a SP500 vs a top-30 blue chip company.
In any case, the charts I post only formulate a predictive analysis (i.e.: current trend, strength and extent of price) and forecast (target, either a quantitative as in the TG-1, TG-2, ... TG-n, which implies a temporary retracement, as opposed to a qualitative target, which implies a significant headwind, and high-probability reversal, as in the TG-Hi and TGHix). They do NOT reflect my "opinion" or perception of the market - They are simply the product of a composite analysis of indicators, geometries, non of which involves price.
As a shameless plug, this is in fact what I teach: A proprietary method that allows the advanced trader to look at a set of conditions that occur outside of the price field. Most of my most successful students end up never setting eye on price at all, and yet can define the trend, strength and extent the market, and look at price only so that they can assign a specific dollar value to the forecast - This is the CROW Code, which sands for Constant Rescaling Of Waves, which integrates fractal geometries, redundant proprietary patterns and basic Fibonacci coefficients - The product is never shown, and the charts do not contain any of this internal information, since nothing happens in the price field.
It takes one lesson to get it, and I coach, teach, tutor and provide amples signals in all and any requested markets for a year and beyond - My course is full for the month, as I take only 1-3 students per month, but if interested in finding out more, feel free to request information at admin@KADAInstitute.com..
I apologize for this self-promoting insert, but I am very passionate about a field which I am not aware is taught anywhere else - I mean predictive analysis and forecasting of the financial markets, that is.
Thank you for your initial query and for letting me digress a bit.