Gearing Up for Something Big

Today marks the seventh day in a row that the internet search trends are reflecting a lack of focus on anything in particular.  People are complacent, bored, even lost perhaps.  Sometimes such periods are remedied with an important sporting event or major holiday.  Often, when nothing else seems to grab our collective attention, a big news event shows up that emotionally we can't help but be engaged with.  The longer this goes on, the more likely something both big and unexpected is gearing up to break into the news cycle.  This is how an MM turn date is generated.  They don't come along very often, but one is in the works right now.  If such an event, whether positive or negative showed up tomorrow, the turn date (pointing to a high or low) would not be before next Monday.  This is like a one week emotional doji, and dojis tend to signal that a breakout (or breakdown) is coming.

Stock market bulls should be cautious as the MM turn date approaches.  Since the market has been going up, that implies a high is forming (either the MM turn date will be a low after a sharp drop or it will mark a high in a few days after a bit more upside-- either way bulls should be cautious).

Dr. Cari Bourette is an analyst at ElliottWaveTrader.net, where she provides her proprietary market mood analysis in our flagship service, "Avi's Market Alerts."