The US share market is declining currently as people think the budget deal will help the Fed taper and then interest rates will rise. Of course, this is a superstition that is up there with the World is flat as well for anyone with a computer can simply correlate interest rates and the Dow Jones Industrial Index and find that bull markets take place with rising rates and bear market unfold with collapsing rates as in Japan for 23 years.
The initial support lies at 15338.17 level where our first important Daily Bearish Reversal lies. The Weekly Bearish Reversals do not begin until 14708 and 14450. Nevertheless, we are preparing a special report for there appears to be an important Cycle Inversion on the horizon. This is determined ONLY by our Global Correlation Model rather than the flat market model that does everything on an individual basis and does not correlate between markets or models within the same market. It is the Global Correlation Model that combines everything and will not run on a laptop in any timely fashion. Even the Global Market Watch is a pattern recognition system that does not correlate with the cycles, reversals, etc. Even the trading illustrated with the reversals we show at conferences is not correlated with cycles or pattern recognition.
Next week should get a bit more volatile and we have some very choppy trends into early February. Overall, we warned that the market could be reaching a temporary high because of a Cycle Inversion. We will discuss this in detail in the upcoming report.
