What a wonder has been the market's [forecast] levitation. Similarities among various technical measures to conditions at April peak abound. And still, there is reason to believe levitation might persist, as nothing signaling technical breakdown challenging this can be found.
Of course, the situation could change in an instant. A decisive break could come as soon as tomorrow. Yet everywhere is indication top possibly has not been reached.
Lurking, too, is the fact that, at April top relative strength maintained a position of extreme buy-side strength for an extended duration lasting several weeks. Last Thursday's surge brought but the first extreme RSI peak registered during the market's advance off late-August bottom. So, levitation might continue for some days longer.
If at first you don't succeed, try, try again. My eyes once again are open to the possibility that, a "rising wedge" might be unfolding and forming wave 5 of c.
Contrarily, waves i, ii and iii of 5 already might be formed, with wave iv of 5 unfolding presently and wave v of 5 ahead.
Or, wave 4 of c ended last Wednesday (11/3), and wave 5 of c Friday morning, suggesting a breakdown confirming this possibility is imminent.
Given how the market's levitation has persisted thus far, prudence awaits a clear signal bolstering the possibility its end has come, however.
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Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
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