For example, it could be a stake in the heart depending on whether xxxx holds or breaks.
The market is extremely weak and in some respects the technical are similar to when the Fed stepped in to save the market in March 2020. But stock prices didn’t begin to rally until 10 days after the Fed first intervened with massive cash injections. So we probably shouldn’t think about a bottom here until the Fed reverses course and pumps in enough cash to make a difference. Non subscribers click here to access.
Unlike in 2020 however, this would be a policy 180. Back then, the Fed was already in a program of “enhancing” the market with QE. It just massively expanded it. I cover these issues in the Money Trends reports. Non subscribers click here to access.
In view of that context, any readings of extreme technical weakness might be the precursor to a xxxx xxxx xxxx xxxx rally, but there’s no reason to be xxxxxx xxxx stocks yet. On the other hand, it’s a little late in this move to be xxxxxx xxxxxxx xxxxxxxxx on a swing trade basis. For nimble scalpers, I’d call it a “maybe.” Non subscribers click here to access.
Cycles- By one count, the 10-12 month cycle could be at a low, with a potential to turn up for a few months. However, a breakdown below xxxx would suggest that this cycle is early in a down phase, projected to last until at least next xxxx. That would imply the likelihood of much lower prices over the next xxx months. Non subscribers click here to access.
There’s a tentative 6 month cycle projection of xxxx-xxxx. Non subscribers click here to access.
A 4 week cycle low is due xxxx xxxx, at just xxxxxxx xxxxxxxx xxxxxxxx. If the market bounces early in the week, that scenario is in play. But if the 6-7 week variant is dominant, this week will get xxxxx xxxxx xxxxxxx xxxx. That cycle has a projection of xxxx, with the expected low in the last xxxx xxxxx xxxxxxx. Non subscribers click here to access.
The 13 week cycle remains in a xxxxxxxxx window, with a projected low of xxxx-xxxx. With liquidity scarce, there’s potential for a vicious bounce driven by short covering at any time. But the question is whether it will come from this xxxx-xx area, or equally likely xxxx. Non subscribers click here to access.
Third Rail To break the 2 steepest downtrend channels the SPX would need to end this week above xxxx. The top line of the third channel will be at xxxx on Friday. Non subscribers click here to access.
There’s a support convergence around xxxx at midweek. That’s a likely short term pivot area. If it breaks instead, the next target would be xxxx. And if that broke, we’d be looking for xxxx as the next likely target. Non subscribers click here to access.
Long Term Weekly Chart – The support convergence at xxxx now looks critical. The next target would be xxxx-xxxx if that breaks. Non subscribers click here to access.
Monthly Chart – SPX has broken long term trend support and is now targeting xxxx-xxxx either by the end of October. The xxxx range should now be resistance. Non subscribers click here to access.
Cycle Screening Measures – Cycle screening measures plunged to extremes but suggest the possibility of xxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxx ahead for at least several more weeks. Non subscribers click here to access.
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.