Cycles are shaping up for an important high just before (or just after) Christmas (It is decidedly so). In addition, the Bradley model shows a high in mid-late December (You may rely on it). If you feel like turning to this popular children’s’ toy for advice, it is understandable if not advisable. The Trump Rally has left many reliable indicators in the dirt but remember… To everything there is a season, and a time to every purpose under the heaven.

I have been tracking some unique cycles for the last few months. The chart below shows a convergence of these two cycles on, or near, December 23.

The November rally in the Dow is currently finding resistance at the 127.2% level of the June rally.

A more likely high is near 20,150 where the 2016 rally is equal to 161.8% of the May’15 decline. This level converges where the November rally reaches 138.2% of the June rally. Whether the Dow can break through the 127.2% level (the current level) prior the December 23 remains to be seen. A break of 20,000 would be definitive.

In addition, the Bradley model shows a high in mid-late December.

Try a "sneak-peek " this month at Seattle Technical Advisors.com

Ed Carlson, author of George Lindsay and the Art of Technical Analysis, and his new book, George Lindsay's An Aid to Timing is an independent trader, consultant, and Chartered Market Technician (CMT) based in Seattle. Carlson manages the website Seattle Technical Advisors.com, where he publishes daily and weekly commentary. He spent twenty years as a stockbroker and holds an M.B.A. from Wichita State University.

© 2016 Copyright Ed Carlson - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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