While there are indications that a short term low is complete, it won’t be all clear sailing ahead. Here’s why.
Cycle screening measures improved today for the third straight day.
Most cycle projections have been met. Have the risks been mitigated?
Cycle screening measures hinted at a short term bottom in spite of the near bloodbath in the market averages. This report explains why.
The cycle projections continue to lag the price action. This usually only happens in the first leg of a new market trend.
Cycle screening measures strengthened slightly along with the market averages today.
The fate of this selloff should be decided between here and 1860.
Cycle screening measures reached new lows for this decline. The potential positive divergences versus the market averages over the past few days have been broken.
The decline has become disorderly. Downside projections for the longer swing cycles have lagged the market action and current downside projections have been broken. All cycles are in gear to the downside. If certain critical near term support levels fail to hold the market would then be in crash mode.
By Dow Theory standards, 13 of the 41 ETF charts which I review nightly are now in bear markets.