Equities sold off sharply as the election results started to come in, but by the end of the week, the market had settled generally higher. As with Gold, equities have a Cycle trending in a certain direction, and we should continue to follow the dominant trend until the action directs otherwise.

The Dow Jones made a new high this week, but the broader market has yet to follow. And since weekly Cycle timing continues to favor more downside before an Investor Cycle Low (ICL), the resistance line on the below chart should continue to hold. At this point, there is not enough evidence to warrant speculating about a new Investor Cycle (IC) and IC rally.

For now, a reversal lower from here as part of a Left Translated Cycle is the highest probability scenario for equities. But the highest probability scenario does not always come to pass. If, instead of rolling over, the market moves to a new all-time high, we will need to quickly change our perspective.