November 18, 2019 | Dow Move Above Some Big Obstacles Would Likely Clinch 30,000

The S&P mini-futures topped three ticks from an important rally target on Monday while the Dow missed a corresponding target by less than two hundredths of a percent. Is this the Mother of All Tops? Probably not, if for no other reason that we cannot expect to nail the top of a bull market that has been making record highs for more than a decade –especially when we’re fixated on a price target that has been drum-rolled here for weeks.  Even so, those who shorted the E-Mini S&Ps at their intraday high reaped easy gains and could roll up even bigger gains if the high is not breached on Tuesday. My hunch is that it will be, but that significantly higher prices over the near term are moat unlikely until stocks have had a painful correction. It is not merely because important Hidden Pivot targets have been reached, but also long-term trendlines that stretch back for years. Together they offer resistance that is most unlikely to give way easily, even if bulls marginally penetrate it over the next few days. If I am wrong and buyers shred these obstacles as though they did not exist, you can infer the Dow is on its way to at least 30,000, a seven percent rise from current levels.

Rick Ackerman November 18th, 2019

Posted In: Rick's Picks

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