New Highs Or Bust

New Highs Or Bust
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Authored by Sven Henrich via NorthmanTrader.com,

Long term market trends remain intact, yet charts indicate a market on a knife's edge as significant technical damage has been inflicted. Markets are deeply oversold and the nature of the next rally will be determine whether this bull market can survive or if a larger bear market may begin to unfold. The larger message: New highs or bust.

In this week's update I'll give you both some of the bullish and bearish perspectives focusing mainly on technical considerations.

Before I dive into some of the arguments first some context and perspective on this correction because it is so critical to understanding the big picture and why this correction may be different.

In early September in "Lying Highs" I outlined the following:

"A key test may come for markets in the September/October time frame. If prices can sustain above January highs the 3042 technical zone may well be reached in 2018.

If not, the risk dynamic may shift dramatically especially if volatility is breaking out of its wedge pattern":

Here's the updated ....

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