How To Tell If Today Was The Stopping Point Of This Rally?

David Frost // Market Outlook


October 23  

Today appeared to be another strong rally in the stock market.  Under the covers was some typical signs of market exhaustion.

The volume today was not great, and for a day where the Dow was up over 300 points early on, you would think there would be wide spread buying with both hands.

It is my contention that we are in the midst of a bear market rally, rather than the beginning of a long term new leg of the bull market.

Right now there remains some probability of making new highs into next year, but they are significantly less than 50%.  It does exist, therefore we keep the possibility on the table.

Today marked the second Solar Eclipse of the month, and as discussed in many of the video’s, this normally marks either a turning point or acceleration point in many of the markets.

Crude oil tested the $80 level and reversed, finishing the session up.

Gold went in the other direction, but may push higher into Friday.

The full analysis can be found in tonight’s video.

About the Author

Trading and investing in markets is second nature to some, but a mystery to others. The goal is to provide a forum where everyday people aspiring to be part time or full time traders will learn how view markets differently and profit beyond their wildest dreams.

David Frost