US Equity Markets on Roll - How Long Before A Thud?

Keep your ears to the ground. This meteoric rise of US equity markets is unsustainable. It is bound to fall like a ton of bricks. Reason - the rise has been without proper foundation. It is as if some deep pocketed cartel has decided to off load its portfolio in equities and switch to some other market . To start doing that, the prices have been jacked up so that more investors join the band wagon, believing that bull market is intact, alive and kicking. That is far from the truth.

To understand what is happening in market, you will have to refer back to my last Sunday blog post here What's in Store for US Markets in 2019 ?

In my forecast for the month of January 2019, I had envisaged Dow going above 24000 level. But  not in such a fast and furious fashion!! I had also mentioned that Dow will reach 25000 by end January or February. But it seems that this market is in a tearing hurry to reach 25000.

What is causing concern to me is that the present rise is with low trading volume. That is typical of times when big players haul up prices as a part of process of distribution.

In any case we have the complete course chart of Dow for 2019.   Keep referring to it when in doubt. I will keep you posted of the developments. Traders should not think of buying at this point. For selling, let the current up-leg top out first, which I shall indicate in advance.

Remember it is still a bear market and 23000 in Dow can be easily achieved in coming days. So trade with adequate caution against upcoming volatility.