Cycle screening measures were slightly weaker on Tuesday but they’re not tipping their hand yet.
The rangebound churning yields little in the way of information about when and in what direction the trend will break out, but time should now be working in favor of the bears. Here’s what needs to happen, and what could happen if it doesn’t.
The indicators present a confused and confusing picture, because the market is so uncertain, with the fate of the trend literally hanging in the balance. Was the late selloff just recoil, or a death knell?
With the rangebound churning of the past few months, the outlook changes with every whipsaw.
Cycle screening measures were very strong on Friday but is it something more than a drag race on a quarter mile track?
Stocks raced upward toward resistance at the top of the range on Friday. Cycle projections suggest new highs.
Cycle screening measures were slightly stronger on Thursday. There were a few more measures with increases in new buy signals than sell signals and 6-7 week cycle status popped, suggesting that a short term low is in. But intermediate measures remained weak.
Normally news is noise, and that may still be the case, but the jobs data has the potential to give the market a push if it triggers a change or strengthening in consensus sentiment. Here are the numbers and indications to watch.
Cycle screening measures were weaker on Wednesday. The aggregate measure established a new pattern of lower highs and lower lows. But the intermediate pattern is still not conclusive.
There are indications that short term cycle lows should form around current levels. What happens on the heels of these indications will have major implications.