The LT wave did very well for September.
Expected strength early in the month was rather underwhelming and hardly kept the S&P 500 above 4500. The final 3 weeks, when weakness was projected, produced one of the biggest selloffs so far this year, dropping over 200 points and ending the month near the lows. How does it continue?
Here is the LT wave chart for October:
Perhaps surprisingly, the wave projects a strong period from the get go, with a very high peak value on the 6th, but strength could stretch out until around the 17th. The market may use this to recover some (or all?) of the September losses, but how high such a rebound might go can not be foretold from the LT wave. Then a weaker period until the 27th, with a couple of stronger days to finish the month.
It will be interesting to see how this pans out.
Normal caveats apply: don’t bet the farm on LT waves.
LunaticTrader 