 Bob M is the Basel Chapman as we do each and every Tuesday and don't forget folks Basel has an outstanding show here every trading day, 10 to 11 Eastern Standard Time, also has a great newsletter. Now it's very easy to get his newsletter, you come over to TFNN, you're going to see it right under featured content, the opening call. You just hit the opening call, you're going to hit subscribe, you can get the newsletter for one month for $149, you can get it for six months for $6.95 which is a savings of $199.22% and you can get it for one year for $11.95 which is a savings of $593.33%. Now folks they all come with a 30 day money back guarantee, you like it, great, you keep it for some reason, it doesn't work for you, guess what? Just tell us you want any money back, no problem. Basel in particular has approximately 10 to 12 archives on his site. So the bottom line once you get it you're going to understand how to look at this market, how to ride that chap and wave every single day. Basel Chatman, what's going on? Hi Tom, how are you? I'm doing great man, yourself? Very good, thank you. Cool man, so we get a market, huh? We always have a market and the interesting thing here is, I had mentioned to you I think last week that what I'm looking at closely and what we've been looking at for months now is how so many stocks come back to within pennies of their previous high and then start to pull back again and we're looking at the Dow at $36,565 all time high, not on the 8th of November drops all the way down to the 200-period moving average exactly gets to the $34,022 level, spikes up to $36,189, pulls back very sharply to the $34,715 area and then has almost like an A to B equals C to D although in the chapter we recall a leg C and moved to the upside and what is the high today, $36,527 it is unbelievable it's within 40 points of the all-time high and this is weeks and weeks later so I've got to consider that this is a pattern that I need to be cognizant of going into the end of the year one of the things I spoke about all the way back in October as I said if the Dow especially the Dow but if the Dow closes in November in last week of October the first week of November close to the yearly high then there's a really good chance that somehow some way it closes pretty close to that level by the end of the year that's been the history just that's from my memory I didn't actually go back and check it out but that's just my memory so we are very close we've got a couple of days to go and I'm watching these potential double tops now the S&P I should also mention that we have very good technicals actually in this leg C in the chapwave we were always looking for at least a D you saw this big D right here in the weekly chart but most importantly is I've got a lagging on balance volume stochastic has finally gotten over 80% to 85% that's a good sign the MACD is good the 90 is over the 14 so it's really going to be bad news or something that comes up very suddenly if there's going to be another sharp drop but I'm anticipating that we have some kind of a pullback in the next day or so then we do go to this leg D and that's where I think we got to be careful again and one of the reasons I say that is look here's the S&P this is the daily chart has spiraled above the previous high 47 43 83 was the high on the 22nd of November we're quite a bit above that now we're at the height today was 48 07 so that doesn't have the double top aspect but it does have this rising channel with what I call a chapwave inside track repellent zone you can see every time in this weekly chart the middle chart the price got up into this very narrow little mini channel green on the upside because if it pierces that decisively that's a big breakout but if it stalls from the pink line to the green line which has done so many times over the last six seven months that's another sign that says okay could pull back but it is a rising channel so far we've got rising highs and rising lows so that's good so there's a real big divergence going on the QQQ hasn't been able to accomplish the same thing but it's pretty good so far on the high today's 404.58 and the high is 408.71 so you can see what I'm talking about with the chances of these double tops coming in very close to one another yes hey Basil let me ask you so the the track before this but the S&P in a monthly is only on a B right but yeah I don't know how to explain no that's all right I just I get it that's cool so it is amazing that because I have a methodology of bi-signal that goes technically to a bi-mode and absolutely everything about the monthly chart is in a bi-mode it should go to at least four higher peaks to which is cool now I can see that okay and that doesn't tell you that's I use a completely separate thing to talk about the pullbacks but can you imagine that we've gone from March of 2020 at 21.91 and we've only had look at this minor little peak it was only 30 or 40 cents away from an all-time high and what we're all looking at and that's really important is that within the context of monthly charts one little peak from March 2020 again we are December of 2021 and we've only had one minor little peak in leg B because we made a new recovery a new all-time high in the month of December and that says if you if you use just basic numbers you've got this to say no matter what happens January does not make a new high whatever the high is in December January does not make a new high so that makes peak B then no matter how deep you go down it doesn't matter you're gonna have to make a leg C which is higher than B so that goes Jenny then February starts leg C let's say March you pull back for peak C then you get your leg D and that takes you to April and that makes it may before you can get an all-time high at the at the soonest and it doesn't once again that doesn't tell you how high you're going to go it just says that there should be higher highs to come over the next few months well it sounds like some fun well you know what I'm thinking I because you know we keep talking about this rotation and if you look at some of these stocks they've been just absolutely hammered I mean the reason why the QQQs aren't leading anymore is you've got stocks like a docusign and so many even the stock like Adobe which was it's a fantastic company it was leading all the way even that's pulled back let's see adbe look Adobe is pulled back very sharply from the 699.54 all-time high down to the 540s is now trading a 579 so there's a lot of work to be made up so my suspicion is this that the rotation continues that we're going to see oh is there something we can hear you can also see that within the different context of the IWM which is you know this that was leading once and then it started to fail and now it's from 244 high of November is pulled back all the way to the 209 level is the 223 so my suspicion is that the rotation will go on and it's funny because I'm sure you're aware of this just the retail with Amazon look the RTH which is the retail index is acting completely different to the XRT and the RTH has Amazon and the XRT doesn't and that's the market we're in a mixed market very diverse got to be very selective and so far we remain long the doubt and folks very easy to get Basel's newslet I come over to our website at TFNN you guys see it right under featured content Bows you have a great one safe one we look for a show tomorrow thank you