February Commentary

Let's revisit our Dow Jones as it seems to be marking step. We previously said that it needed to penetrate the 11000 resistance to resume a bullish course. I said before: "If the trend resumes, then we should expect another consolidation before the wave (4) deploys.". The Dow is clearly moving to new highs and the next target could be at about 11350. Although the first crossing came in January, the index paused again as the resistance was very strong; the second crossing is more convincing and it should lead to the completion of a real wave 3. It will not be shooting upward but should make new highs periodically.

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If we look at NASDAQ we have a similar picture where again the price moved almost to our target of 2000. The 2000 level was not crossed but should be within the next few weeks. The last trough was very disappointing as it probably took out many bullish positions. It is on the rise again but it lacks momentum. This pattern requires a lot of attention because price could retrace very quickly after making a peak in the 2000 region.

The monthly commentary has lagged a bit in the last few months. We should resume to a monthly pace after the release of the WealthLab platform.