The NYSE Composite index closed the week at the exact same price point as what was seen two months ago. In essence, after the nice October rally, leading indexes like the NYSE and the Dow Jones were range-bound. That’s not a bad thing, but it's also not a sustainable thing.

As said previously, a pullback is underway. Here is one chart from our premium research service, Momentum Investing, that has a potential target. Yes, we do forecast a pullback between mid-February and mid-March, which should be a ‘buy the dip’ opportunity and confirm the nascent bull market in stocks (one of our 2023 market trends). Again, this pullback will not be the start of a crash, as we see no market crash in 2023.

Presented below is the NYSE index chart, with our annotations provided.

As previously seen, the market transitioned from a bearish rounded (topping) pattern to a bullish rounded (reversal) pattern on Nov. 9, 2022. In essence, the ‘breakout price point’ is the one that we believe will be tested again, somewhere in the next few weeks.

The small orange circle on the chart is the price point that we believe will be tested. In terms of timing, we believe somewhere in the first week of March is where this price point may coincide with the rounded pattern. Whenever two dominant patterns or trendlines coincide, you better mark that day in your calendar.

Our expectation is that a pullback to 14700-14900 could be a real possibility in the next two to four weeks from now. We believe it will be a ‘buy the dip’ opportunity.

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