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Thursday’s action was no surprise, and there is likely to be more volatility in due course, but in the meantime …

Market Outlook:

… We’re likely to get a short term bounce or reprieve.

Why?

Because of the large number of reversal setups forming on Friday. Specifically, I’m referring to the Railroad Track pattern. When an abnormal number show up, they almost always deliver a short term reversal.

Beyond that, I don’t think we’re out of this particular skittish phase of the markets as there’s simply not been enough damage compared to the nervousness out there.

The outcome could be a classic waterfall pattern as stocks recover back to Key Levels only to bump their heads and head back down. That’s too early to call right now, though a recent example is NFLX … make sure you watch today’s video for that.

Ultimately, there’s not a huge amount of value in trying to predict too far ahead, but I’m confident that beyond an imminent bounce will be further volatility. The only real question is whether that happens before our after the New Year.

Our market commentary continues to be outstanding. Mastering market timing enables you to swim WITH the tide at the right time.

Watch the video for more detail.

Market Timers:

• Longer Term Market Timer (OVIsi):
  Green.
• Medium Term Swing Timer:
  Bearish and oversold.
• The Main Indices:
  Negative for all the main four indices.

Stock Selection:

Another challenging week to find gems, though we did indeed find a handful.
My main focus continues to be Big Money Footprint setups in the glow of post-earnings … Trend Fades are particularly instructive, and I’ll be covering those at length at the VIP Summit. There will also soon be new research and filters for this exceptional indicator.

It remains choppy out there, and a good time to hone your technique in preparation for the next constructive phase in the market.

More By This Author:

Volatility Demands Your Patience
Earnings And Volatility Dominating Setups
Early Earnings Results Point To More Upside