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QUESTION: Martin
I find it interesting how the ECM shows The DOW at three green largely pressing higher for daily. Weekly and monthly BUT the SP is turning red in daily and monthly
Please Explain how the DOW can continue to press much higher as the SP Declines
Regards,
Dr. JCL
ANSWER: The answer is the market is not ready to take off just yet. The difference between the Dow and the S&P is foreign institutional money, which buys the Dow big names. the S&P 500 is the broader market and that tends normally to be more domestic. It will also take off during the boom, but we are just not yet ready for prime time. Most likely we are looking at a turning point in the Jan/Feb period.
Also keep in mind that the Global Market Watch is not the system model. It is a pattern recognition model fully AI functioning recording patterns as it goes from everything and tests those pattern against its knowledge-base. Hence it is more of an alert rather than a trading system.
