- Posted August 28, 2014 by
Is The Summer Rally Over?
In the prior forecast, stock prices had just experienced a steep decline. The New Andrews Pitchfork Indicator gave positive readings, the highest of which was a 4. At that time new all time highs were forecast.
Prices have achieved that goal this week and traders are preparing for a fun labor day weekend.
GDP was reported at over 4%. This supports the notion that the fed needs to increase interest rates. As the fed pulls back on QE, Euroland is gearing up for their version of QE, to prevent deflation.
With all of this, plus an important classic technical analysis indicator signaling an important high this week......the question is.....how quickly will the stock market show a 15% decline?
Yesterday the NAPI seen above showed a +2 signal. Signals at the end of an up leg that fail tend to signal a decline.