According to my turn probability summation system, the days this coming week with the highest chance of seeing a turn in or acceleration of the current trend in the DJIA are Monday July 20th and Tuesday the 21st, but the system readings for the rest of the week are too high to ignore. Not a heck of a lot of help I do realize, but it is what it is. To make matters worse, this is probably not just one big week wide window, but a series of windows, meaning whipsaw action across the week.
Last week the Tuesday - Wednesday turn window in red in the marketwatch.com plot excerpt below was in the middle of a sort of triple top pattern leading to the decline on Friday. Not exactly tagging the turn which occurred on Thursday, so I suppose it has to be labelled a dud.
This past week the QQQ broke out of the diamond pattern that I noted a couple of weeks ago. With a turn window early this coming week, a turn back up to test the diamond should be expected if an acceleration down does not occur. For the diamond not to crack, the lower trend line of the pattern must stop that test rally.
On Monday the UK gets a new Prime Minister, Andy Burnham who has promised a fresh start with big changes to make Britain great again to steal a phrase. Keep an eye on the Pound and FTSE next week for some fireworks depending on what the new PM has to say about his plans.
Regards,
Douglas
