Markets dropped last week, but the recent uptrend remains intact.
Our lunar Red period has a couple more days to go, so we could see more weakness early in the week, but basically we are setting up for another rally attempt.
Here is the current Nasdaq chart (click for larger image):
I think there will be a retest of the 3200 level as the next lunar Green period gets underway later this week.
But even if we see new highs just above 3200, I would advise special caution for the second half of October.
The market has been rallying since June, and October has a nasty reputation.
In recent years we haven’t seen any October troubles, which means we may be ready for a new bout of October troubles. A sudden drop to the 3000 level would not surprise me.
Be ready.
Danny.
LunaticTrader 
Agree with caution. Speculative penny stocks and related outpacing quality names by a substantial margin…correction to longer-term valuations on the horizon. Might be messy in the last half of October. Keep an eye on bear ETFs like TAZ, FAZ.
October has the reputation for being a bad month for stocks, but on average September is the worst month. But it seems that if the market is going to crash, it crashes in October.
That’s right. And after a pretty good September there is a bit more reason to be careful.