We closed in the SP 500 on Tuesday at the exact same level we closed at On October 29 — over 3 months of doing nothing. Over that time some stocks have soared others have gotten smashed.  Right now, the bank stocks look like they are ready to resume uptrends. If they do fulfill that promise, then I think the market averages can rally as well. If they fail, big trouble.

I am still following the fractal I posted at the end of last week. Nothing yet negates that pattern, which calls for lower prices immediately ahead. A failure in banks to rally here, would be a big assist for any decline. The other key stock is AAPL. Failure here,  and AAPL should lead stock market averages lower. A third stock with a bullish set up is SBUX. So the banks, Starbux and Apple are going to tip us to the next directional trade!

Thanks,

Joe

PS-Recently I opened up a new program that I have been working on for the past few years. At a key point, I tweaked the formula and this thing has been absolutely on fire. If you want to see the trades it is kicking out, click here.