In my post here of a week ago, I said that the TopFinder marked TF1 had about two or three more days to run, after which we were to expect a consolidation.  And that is exactly what has happened, as we see in the updated chart here.  TF1 ended last Wednesday, after which price has been flat, the beginning of the expected consolidation.

I’ve added to this chart something which I probably should have put on last week’s chart, and that’s the light, dotted purple curve.  This is a TopFinder that’s fit to the small left-most arrow, and which tracked the highly accelerated move from late August to mid September.  That TopFinder ended on Sept. 20th, after which there came the extended consolidation up to that pullback on Oct. 4th.

Now we see that TF1, the TopFinder that was fit to the pullback of Sept. 23rd has also ended and we’re entering another consolidation.  These are the typical behaviors of TopFinders.  Perhaps instead of calling them Top Finders, they should be called Consolidation Finders, since they identify the end of an accelerated trend and the beginning of a consolidation.

What should we expect to happen next?  The thing to watch is whether price remains above the closest-in Midas support, S2.  If S2 holds, then price will go on to new highs, up to the end of the next TopFinder, TF2.  But if price breaks below S2, that’s the start of a new downtrend.

The TopFinder TF2, which is fit to the Oct. 4th pullback, is still running, and is now 72.3% done, with its projected end at the horizontal location of the right-most dashed vertical line.

Tweet This Post