Yes, a likely reaction point. But that may not mean much. Cycle projections point higher still (subscriber version only)..
On the weekly chart, updated long term cycle projections as of October 10, 2021 show targets ranging from xxxxx to xxxxx for cycles of up to 7 years. The SPX is above the 18 month cycle channel extension, suggesting that the long term trend is accelerating toward a possible target of xxxxx at the end of November.
Long term momentum indicators suggest higher for longer. They normally form negative divergences long before price peaks.
On the monthly chart, the market uptrend channel lower bound is at 4300 in November. They’d need to break that to show any sign of possibly ending the bull market. Clearing the long term trendline around xxxxx would set a course toward xxxxx in November and possibly xxxxx in December or January. The monthly long term cycle momentum indicator remains bullish.
Cycle screening measures remain bullish.
Swing trade chart picks will be posted Monday morning.
These reports are not investment advice. They are for informational purposes, intended for an audience of investment and trading professionals, and other experienced investors and traders. Chart pick performance changes week to week and past performance may not indicate future results, as you know. Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance.