The possibility exists for an inversion though it will depend on how Friday plays out. Also, I think the Bradley is being sorely misinterpreted by many. It is a chart which attemps to pick out market turns. What happens after that turn is up for debate as the Bradley is not designed to suggest magnitude of the move following a turn. Most are going to look at the current Bradley chart and see a significant low and then a huge up move following that turn.The correct interpretation is that April 11 is suggested to be a turn. That's it. You cannot assume it will be a low nor can one assume that the move following the turn will be huge or even that the turn is significant. Is there evidence to back this up? Sure...
Look at the Bradley which suggested a turn date for Oct 9, 2002. If you followed the Bradley in a strict manner, one would have expected a small rise and then an equally large drop to to follow like the one from June 2002 into October 2002 because the March 13, 2003 date on the Bradley is far below the Oct 9, 2002 date. It didn't happen and in fact, those October lows are still holding. Thus, the huge move down from Nov 25, 2002 to March 13, 2003 turned out to be a relatively minor move in comparison to the initial raly from Oct 9 to Nov 25.
Even if that April 11 date does indeed turn out to be a low, I would be willing to bet that the "huge" move into June 23, will be a dud and is more likely to be a sideways pattern that ends up frustrating the hell out of both bulls and bears as the market continues to be range bound at best. In that case, the low may not really be that significant at all. |
