With December 2016’s closing bell, the Dow Jones Industrial Average completed a 9-month Demark Sell Setup. This 9-month uptrend (where each monthly close is higher than the close of 4 months prior) is a common turning point for the market. Each major market peak of the last 20 years (2007, 1999) for the Dow Jones and/or the S&P 500 ended on a 9-month Sell Setup. The current situation could be more dire than usual, as this Sell Setup follows on the heels of an 18-month bullish period beginning back in September 2013 – meaning the market is in an extremely bullish phase and ripe for a significant correction. And the S&P 500 has also completed its’ own 9-month Sell Setup in December – similar to the DJIA.
The picture of this extended bull phase is presented below for the Dow Jones. The 9-month Sell Setup is highlighted in cell AT-332.
The spreadsheet which tracks these movements is described here: Trend Exhaustion Market Timing Excel Spreadsheet