Good Morning:

• Yesterday’s price action ended in a bull/bear draw, closing smack dab in the middle of the candle.
• It was a volatile day with a 108-point range.
• Yesterday’s close also landed in the middle of a three-week triangle consolidation between 4078.75 and 4186.50.
• The levels quoted are now the current breakout levels.
• The hat tip still favors the bulls without a full market meltdown in the face of another lousy (and understated) CPI report.
• Moreover, Hurst cycles are often muted, coming off a bear market low.
• Perhaps the current consolidation is the 20-week cycle correction – or the correction may be running late.
• Our best judgment remains that the price will tag our original target around 4325-4345 before a meaningful correction ensues.
• Markets do fall short of achieving the full octave from time to time before a meaningful correction, and there is a laundry list of negatives out there to drive the market lower.
• As always, we will let the price and algorithms guide us.
• Our target remains between 4325 and 4345. If the market cannot achieve the levels, the price will roll over into the 20-week correction sooner rather than later.
• You now have the breakout levels to watch.

A.F. Thornton