Are New Highs Coming? Here’s How to Tell…

The Trump wild card has made it especially difficult to bet on the stock market. Even cynics can’t say for sure that his radical agenda will not eventually produce an economic golden era capable of pushing the Dow average to 100,000 or higher. In just two short months, the president has crushed wokeness and racial quotas, enabling most Americans to feel good about themselves for the first time since the 1950s. And although fraud and corruption in government will always be with us because that’s where the money is, it’s possible Trump has returned America to a path that will reinvigorate just leadership and honest institutions that we can be proud of.  As for the tariffs, they are arguably the only medicine strong enough to jolt the world into doing honest business.  The kicker is that they cannot but entice foreign manufacturers to expand their operations in the U.S.  (If you have read this far and TDS rage has begun to churn your stomach, here’s some advice:  Blow it out your shorts.)

The graph above is intended as a do-it-yourself tool for gauging the power of the bear rally that began on March 13.  The implication is that no short-squeeze will exceed the 5976.00 target (4) of the pattern shown. If it does, then permabears had better not get in the way of the thrust to new record highs that is likely to follow. I have drawn the chart according to the proprietary rules of the Hidden Pivot Method.  This picture exhibits a ‘reverse ABCD pattern’ that I have watched in action 100,000 times and studied for nearly 30 years. Trust me, it works.

Pattern Is ‘Confirmed’

Its accuracy and reliability were confirmed last week when the booster stage of the presumptive bear rally stalled precisely at 5768 (2), a Hidden Pivot resistance that holds the key to interpreting the graph. If the futures should push decisively past it without dipping beneath the point C low at 5559.75 first, we can confidently infer they are bound for at least 5872 (3), the pattern’s ‘secondary Hidden Pivot’.  And if buyers blow past that number, it’s safe to assume they’re locked onto 5976.00 as a minimum upside objective.  Alternatively, a relapse this week or next that breaches the 5559.75 low would be a warning to investors to batten the hatches.

You needn’t trust Bloomberg’s talking heads or PhD pundits to tell us whether THE top is in and stocks have embarked on a potentially devastating decline.  Simply interpret price movement on the chart in the way I’ve suggested and you’ll have your answer.