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.
The market has broken the trendline from the 2011 low, implying that top formation is probably under way. Several long term indicators have now edged below long term trendlines, also implying the potential onset of a bear market, but shorter term there are indications that a low should form this week. This report discusses and…
Like the market averages, cycle screening measures whipsawed on Thursday, but unlike the SPX, they have not made a new low for this 3 week decline. Here’s what to look for.
The rapidly increasing market volatility may simply be an unexplainable anomaly; or it may be just an artifact of the trading range having been crossed multiple times within the past 4 months. Or it could mean that a liquidity shortage is developing for reasons not yet known. Once again the market faces an immediate and…
Cycle screening measures supported the turn in the market, following through on a positive divergence.
Support held and the market rallied, validating the short term buy signals from a couple of days ago. But what about beyond that?
The aggregate cycle screening indicator fell, but ended well above last week’s low as the market averages plunged to new lows for this selloff.