Stock Market Rally: Bull Trap Or A Rocket Ship To Prosperity?

daily chart ANovember 11 2014

11/11/2014 – A positive day with the Dow Jones up 2 points (+0.01%) and the Nasdaq up 9 points (+0.19%)

The market continues to perform exactly as anticipated. If you would like to find out what happens next, please click here. Another set of important market articles worth your time.

The rally from October 14th bottom has been nothing short of astonishing. I would have to double check my Dow data, but I believe this rally has been in the top 5 of all time (since 1790) in terms of % gain over the last 20 trading days. Yet, I would have to side with the articles above. At the end of the day this powerful run up might be nothing more than a perfect bull trap.

One of the easiest and low tech ways to predict the future movement of the stock market is to watch out for open gaps. Not always, but in 90-95% of the time all markets eventually move to close open gaps. And while the time frames for such closures differ, the outcome is almost always the same.

Why is this important? Well, all indices left at least 3-4 massive up gaps from October 14th low. Lowest one on the Dow being at 16,100. Suggesting that the Dow is likely to re-test this level within a relatively short period of time. Perhaps much sooner than most people believe. A simple fact that gives much more credence to the articles above.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE

(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. November 11th, 2014 InvestWithAlex.com

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