Waiting for continuation

Markets held stable after last week’s dip. Now it remains to be seen whether stocks will continue downwards or simply resume their existing up trend. The current lunar red period is ending and our LT wave for September suggests potential weakness until the 25th, so a downward continuation is to come sooner rather than later, if it comes… If stocks muddle through this week without further losses then an upward continuation will gradually become the more likely scenario.
Let’s have a look at the S&P chart:


The technical situation keeps pointing both ways. The slower Earl2 (orange line) is still not bottoming out, but the faster Earl (blue line) is turning up again. The MoM indicator is entering the blue zone, which typically marks important market lows, but also not turning up yet.
It looks like a bit more time will be needed to get a really good setup. So, I wouldn’t rush in just yet. What will happen next is still very much in the balance.

By Dan

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

Leave a comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: