SevenSentinels.com

Primary Trend: Bear Market ~ Intermediate Term ~Seven Sentinels~ Sell Mode, 30% DXD, 20% QID, 30% SDS, 20% Cash

Thursday market left us right at the brink of trend change, both in terms of price and market internals via the Seven Sentinels.

From a price trend standpoint markets have rallied right exactly to the downtrend lines. If the downtrend is intact, this is the top. if the downtrend is to be broken, it will need to do so tomorrow, Friday.

Meantime of the Seven Sentinels, five have moved to buy signals, while two, NYMO 8/34 and NAMO 8/34 remain on sell mode, and thus the Sentinels collectively remain on sell mode.

Experience with this kind of critical situation tells us two things:

1. Markets may be very volatile tomorrow, with pokes through the trendline and incursions into Seven Sentinel Buy territory, especially of numbers come in "hot" as we expect, but alternating with failures on both. Only when the day has ended will we have a final judgement on he trend ahead.

2. Of the two possible outcomes - trend change or trend continuation {downtrend}, the latter has a far higher probability, perhaps by a margin of ten-to-one or more. here is why:

A. Coming into this "brink point" the Seven Sentinels have ttold us that the trend is down. In the vast majority of cases, the trend in place before the "brink-point" will emerge as the trend after.

b. The downtrends in price as shown above represent resistance. Markets which have expended a whole lot of energy getting to this point are now hitting price downtrend resistence. The most likely outcome is price rejection at this downtrend line and resumption ahead of the downtrend in place prior to this 3-day rally.

So markets are now on the brink of trend change based both on price and internals, but as said, our money, figuratively and literally, is on the resolution to the downside.

We do not expect to make the final call on this till late in the day, but we anxiously await tomorrows verdict.