July 20, 2012 Contradictions Continue as Latest Pattern Signals Higher Prices Ahead
Just two days ago our bulletin called for lower prices in the future. That conclusion was based on the then current pattern of two advances in a row. Today, with the markets posting a single sessions loss following three straight gains, the same data base shows this combination occurring mostly when the trend of prices is up.
We offer no apologies, much less an explanation to coordinate these twin, opposite projections. The diagram indicates that of the 27 happenings, 23 repeats took place during the last two bull markets in 2003/2007 and the current phase that started on March 2009.
Clearly, the safe haven conclusion advises watchful wariness, since projections that about turn within days fail to provide a basis for financial decisions.
DJIA -.93 percent
NASDAQ -1.37 percent
S&P500 -1.01 percent
