Bulkowski's 2021 Forecast July Update

This is a graph of the chart pattern indicator (CPI) against the S&P 500 index. Briefly, the CPI counts the number of bullish patterns to bearish ones in the belief that at significant market turns, the bearish patterns will outnumber the bullish ones, or vice versa. The thin blue line at the bottom of the chart is the CPI.

I discussed this chart yesterday (blog post for 30 June) so not much has changed. The CPI moved up today, helped along by the general market moving up. The chart remains bullish after climbing out of the neutral zone, where it was yesterday.

This is the Dow Industrials in black and the prediction in red.

The curves are similar in shape except the Dow is outperforming the prediction. If the forecast is correct, look for the indices to peak in mid to late July and the head lower going into the fall.

Here's a chart of the Nasdaq.

The index touched the prediction at A and has soared in a straight-line run higher even as the prediction tumbled.

If the prediction is correct from here on out, then look for the index to turn down shortly (within days), heading to the September/October lows.

Here's the S&P 500 (SPX, really) on the daily scale.

The index continued to rise even as the prediction turned down. The prediction says the index will decline from here until late September.

Here's the Dow industrials predicted move for the next 10 years, shown on the monthly scale.

At A, the index peaked but it appears to be rising even as the prediction shows it moving lower. It suggests weakness, bottoming in September or October of this year recovering until early 2022 and dropping until the summer. After that, the industrials should rise until 2028. Wouldn't that be nice?