This is the third Bull Market since 1995.

All of them, including this one, have one thing is common ... what is it?

A quick look at the rectangle areas on today's Monthly S&P 500 chart gives you the answer. A level of 1103 on the S&P has been a pausing and consolidation area for each of the three Bull Markets.

The behavior of all 3 Bull markets has been for our red trend line to finally pull back and touch the blue trend line during a sideways consolidation.

This Bull market has been no different because the trend lines are once again merged. So, this model is saying that we are at that "old familiar place" once again.

This is an important, historic area. The real question at this level is now this: "Will the current Bull market now END and turn into a Bear market, or will it continue on and make new highs?"

This is a monthly chart, so each bar represents one month of time. Historically, the process at this juncture has taken three to five months to resolve. This one has been going on for a while, so we are looking at a matter of only a few weeks before we see how this 1103 juncture turns out.

- (By the way, for the curious ... the trend line settings are as follows: The shorter term, red trend line is a 6 month Weighted trend line. The longer term, blue trend line is a 12 month Simple trend line.)


http://www.stocktiming.com/Wednesday-DailyMarketUpdate.htm