Good Afternoon,

• Like an old friend you haven’t heard from in a while, a Navigator Swing Buy signal has followed the record-setting put/call ratio pointed out yesterday.
• The Buy signal triggered intraday at 3860 and requires a close above that level to be valid today.
• The signal also follows an hourly buy signal at 3828 this morning.
• The Founders’ Group is scaling in and will use sustained trading (a few hours) below the five-day line as a stop (currently 3850 or about 10 points).
• The Founders’ Group entered at the close today and will try to add at the next retracement to the five-day line.
• We are in low-volume holiday trading, so the Founders’ Group confidence in the signal is slightly lower than usual.
• The rally here is also consistent with the 80-day cycle trough, December seasonal pattern, and the Master Cycle path pointed out in my past few writings.
• We will encounter major resistance about 100 points higher at 3960 as the first hurdle for the bulls to conquer.
• Remember that we merely expect a rally here, not the end of the bear market. And there is a risk that this is a holiday trading week flash in the pan.
• Nevertheless, the market is doing what we forecasted, so why not take advantage?
• And wouldn’t the crows be surprised if the bear ended in October 2022
• Do you know what they say? Bear markets often end with a whimper, and nobody rings a bell to tell you it is over.
• Realistically, the bear has not likely ended, but we always keep an open mind. We will follow the price action wherever it leads.

Back to my vacation, as it were.

A.F. Thornton