Zetetic Philosophy

Dimensions of the Rally - Dow Jones Industrial Average

Many traders have been climbing this wall of worry, that there would be a reason to fear an imminent sell off, but its a good thing we have technical analysis

1. The contraction from 11/9 to 11/17 [contained in the green shaded surge higher] was not enough to trigger its own frame in my model

• For example, the two swift slides from the late summer into mid September were just 3-4 day events which had no staying power, but they were deep enough to cause a more dramatic series of lower low price prints
• In our more recent example of price action, the decline from 11/6 to 11/17 was just shallow and impotent

 The current rally state changed dimensions from 22,250 to 23,847, a whopping 1,597 points

• Before today's long candlestick the highs were still contained slightly above 23,500 but were well overtaken by the charge higher regarding tax reform and other news related optimism.  

The greed machine has leveled up and for our sake complacency [Vix index] become even more out of balance.  Time will tell what this will bring, but if totday's action is any indication of the state of the rally it is still fully intact and resumed its winning position for the time being