Last week QuantDNA sent out a cryptic message that we had reached an important exhaustion pattern according to their black box.
It seems that they are very serious about this and have reiterated the signal this morning with some more information:
As we approach the end of the week, the end of the quarter, Triple Witching Day and a full year of unabated bullishness of historical proportions, we can’t help but take pause as our full symphony of exhaustion patterns tip their hat. Specifically, 4 patterns that we refer to as the “Fab Four” have fired in the last 2 days, rounding out what we believe is a very telling market condition when viewed in context with last weeks “Dynamic Duo”.
We are fully cognizant of the cynical conclusions that some might draw when looking at colored circles on top of a chart without the specific drivers and therefore caution readers to make their own independent decisions and conclusions and refrain from making investment decisions based on black-boxed algorithms. We are nonetheless bringing them to your attention and offering no guarantees, only probabilities. History will be the ultimate judge.
The charts below feature prior instances where the Fab Four appeared in such tight proximity to each other…
The decision is up to you whether you want to pay attention to this modern soothsayer’s warnings about the Ides of March. QuantDNA clearly has enough confidence to put their burgeoning reputation on the line. We’ll see how things shake out soon enough.
Lowry Research, while bullish in the longer term, is also calling for a short term correction. Personally, I’m seeing a lot of other things which point to the same conclusion. For the details, watch for the sentiment overview coming up later today.
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