Sideways summer

Markets did climb last week, before stumbling pretty badly on Thursday, but still ending the lunar Green Period with a decent gain.
The steep drop on Thursday makes for an ugly picture in the charts of a lot of stocks and indices, and could foreshadow more weakness to come.
Let’s have a look at the S&P 500 chart (click for larger image):

S&P 500

A new lunar Red Period is getting under way. Meanwhile, my Earl momentum indicator is also signalling a top.
In the next couple of weeks I would look for a drop to 1300, and possibly a retest of the recent low around 1275.
That would set up an attractive buy entry point.

Good luck,

By Dan

Author of LunaticTrader and Reversal Levels method. Stock market forecasts based on proprietary indicators, seasonal patterns and moon cycles.

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