It's a record.
As of yesterday's market close, the Dow crushed its previous record milestone time frame by adding 1000 points to the index in just 8-trading daysadding 100-points in just 10-days.
It is starting to go parabolic.
While the record-breaking pace is certainly breathtaking, it shouldn't be surprising as we discussed in the June 9th, 2017 edition of the weekly newsletter:
“ All that will be needed is a push through of some piece of legislative agenda from the current administration which provides a positive surprise. However, without a sharp improvement in the underlying fundamental and economic backdrop soon, the risk of something going ‘wrong' is rising markedly. The chart below shows the Fibonacci run to 3000 if “'everything goes right.'”
Of course, that piece of legislative agenda was “tax reform.”
The above chart has been updated for that momentum.
Just remember, bull-runs are a one-way trip.
I have taken the chart above and calculated several possible corrections and mean reversions to different levels.
When comparing the probable levels of even a mild correction, 200-points of upside currently hardly justifies the risk being undertaken by investors.
