Financial News

World Economic Calendar

Contact us
We look forward to your feeback.

Trading Analysis

New call-to-action
Technical Analysis

US Stock Markets - Seasonal/Cyclical Correction Nearby

by Antonis Benis, on Nov 12, 2020 4:19:22 PM

Markets tend to turn bullish around elections, last Monday’s - news related - blowoff top,  must have marked the high for the rally that started from the October 30th low.

Dow Jones

Dow Jones 30 registered a sell countdown 13 on November 9th, the sequential sell setup is on 8 today; will be perfected with a close above 29319 (Dec. futures), as early as tomorrow (see chart 1)

DOW 30 Daily Trading Signals

Russell 2000 needs a close above 1734 to also register a sequential sell setup 9. Nasdaq 100 has exhibited a bearish price flip, the high is in place, possible double top.

NYSE Advance/Decline line has made a new high, confirming the recent highs, no divergence there. High yield bond Advance/Decline line has also made a new high, strongly suggesting that liquidity is not an issue in the near future.

Valuations at very high levels, last seen at the top in 2000.


Trading Central Newsletter

Sign up for free access to Trading Central's expert financial insights!



Seasonality is positive from November through April. Presidential election pattern shows a dip from around now into late November/early December followed by resumption of the rally (see chart 2)

Seasonax trading signalsCourtesy of Seasonax


Cycles (daily, short term) suggest a correction that should start around now and should bottom on November 20th and/or December 4th. (see chart 3). The decline shown from mid-December until the middle of January could be a false one, like it was last August (cycle reversal).

S&P short term trading signals

Weekly, long term cycles suggest a decline around now followed by a rally into May 2021 (see chart 4)

DOW JONES  weekly trading signals

Gann analysis

Dow Jones: major resistance at 30142/30250, it is much higher than current levels (29111 at the time of writing this report); I don’t think it can be reached (see chart 5).

DOW JONES daily - GANN Analysis

S&P 500: major resistance at 3587/3620, reached in September and again last Monday but failed to close above it (see chart 6). Next major resistance at 3970, if/whenever the recent highs are exceeded.

S&P weekly - GANN Analysis

Nasdaq 100: major resistance at 12413, reached in September and retested last Monday; is the weakest since September (see chart 7).

Nasdaq 100 weekly - GANN Analysis


Expect a short term pullback/correction into November 20th and/or December 4th (higher low?). From there, expect a rally into Christmas and possibly major top in April/May 2021.

Investors are advised to wait for better prices in the next 1-2weeks; traders could take sell signals against last Monday’s highs as early as tomorrow.


In no event shall its employees, officers, directors, affiliates, agents or licensors be liable to you or to any third party or to anyone else for any kind of financial loss, lost profits, any special, incidental or consequential damage or any other similar damage or any other loss or injury, resulting directly or indirectly from use of the site, caused in whole or part by its negligence or contingencies beyond its control in procuring, compiling, interpreting, reporting or delivering the site and any content on the site. Read more about our Privacy Policy.

Topic:Trading SignalsActive TradingS&P 500Dow JonesUS Stock MarketNYSECovid-19Stock Trading
Trading Platform Comparison

Find the Right Online Trading Platform

Read the Trading Platform Comparison Whitepaper Now




About this blog is a personal finance blog. The articles posted provide relevant trading information, aspects, and opinions from expert professional traders and data and analytics providers.

New call-to-action

Receive Updates