Markets declined into the end of the lunar red period and have started to rebound with the new green period. The August lows have held, so this could mark the end of the recent correction. Let’s have a look at the Nasdaq chart (click image to enlarge it):
The Nasdaq appears ready to climb towards the 5000 level again. The Earl indicator (blue line) has just turned up from another major low, while the slower Earl2 (orange line) has been marking time to let the market catch up. This is a favorable setup. But a drop below the late September lows would invalidate this scenario.
Several readers have been asking for the LT wave chart form October. I was away from main computer, so couldn’t get it out in time. But better late than never, so here we go (click image to enlarge it):
The wave did very well in September with the highs and lows coming very close to the expected dates. For October the LT wave shows a positive bias until the 15th with weakness in the second half of the month. Highest values are on the 4th and the 13th. The lowest values come on the 21st and 29th.
Bear in mind that the LT wave is trend neutral, it is the pattern that matters.
Click here for a copy of the weekly reversal for over 1500 stocks and ETF.
Hi Lunatic Trader, I must say I am impressed by your website and the work you do. The green and red periods are very well found. So nothing but compliments, from Ron, The Netherlands, Europe.
Thanks for the thumbs up, Ron.