By Richard Russell
Market analysis has now become central bank analysis. All the old methods of analyzing markets have given way to deciphering what the Fed or ECB will do next.
I've talked about the pattern of the Dow Jones Averages ever since 1958. Based on the action of the two averages now, I'd say that the market is headed higher. This, despite all the talk of bearish possibilities from China and Russia and the tragedy out of Syria.
The Transports have formed a well defined bottom pattern and have broken out to the upside. The Industrials appear to have formed a complex bottom and have confirmed the Transports. Thus, based on the pattern of the Industrials and the Transports, I conclude that the market has turned bullish and should go higher over the near term.
Lately we've been seeing breadth thrusts. A series of breadth thrusts within a few days is often seen in bull ... Log in or subscribe to continue reading.