Loading ...Stock Cycle Update
From an Intermediate Cycle (IC) perspective (6-8 months starting from the Aug IC Low), the stock market is looking bearish here so I would be careful buying any dips (sell the rallies?).
Regardless of my two possible counts for Trading Cycle 2, my chart looks bearish as TC3 just made a Lower Low which usually signals that the longer IC has started its decline. Not saying we don’t bounce here but my expectations are that we will make a lower high followed by a lower lows. Out of the last IC low in late Aug, we had a very short TC1 at 25 days. I believe this was followed by a long TC2 at 53 days (TCs average 36-43 days low to low).
Regardless of when TC2 made its low (day 32 or day 53) we have now broken the IC uptrend line so we now have 3 strikes (IC trend line break, TC3 with a lower low and the TSI is rolling over below the zero line).
Thanks. Nice chart. I wonder if we are going to have a gap and go with a marked decline to somewhere between 1880-1950. 1950 would fill the gap in the $SPX nicely. If there isn’t a bounce into the close today should portend badly for tomorrow.