Our friends and followers love it when we publish and Adaptive Dynamic Learning (ADL) predictive modelling chart. These are very special charts because they show us what our proprietary predictive modelling system is suggesting is a likely outcome many weeks or months into the future. We wanted to highlight the YM ADL chart, below, because we published it near the end of 2019 in a research article suggesting a deep price correction was setting up for 2020. Additionally, you should be able to follow the YELLOW ARROWS on the chart to see how and where the ADL predictive modelling system suggested the YM price would target.
This new ADL research, in combination with our other recent research posts, suggests the U.S. stock market may be stalling ahead of the U.S. Presidential elections in a moderate “melt-up” trend. Essentially, this means the upside trend bias will likely stay intact for another 35+ days with moderate volatility (meaning 4% to 8%+ rotational ranges) before peaking some time in October or very early November 2020.
As we can see from the chart, the likelihood of a deep price decline in the markets before the U.S. election (Nov. 3, 2020) could possibly be related to earnings, news, a “reality-check,” or some other event. The stakes are fairly high for the 2020 U.S. Presidential elections in terms of the future of the U.S. and the world. New policies and leadership could dramatically alter trader/investor expectations.
DOW JONES ADL PREDICTIONS
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