2 weeks after the September 9 plunge, I thought it would be interesting to re-cap.
The market made a series of lows at an obvious support level – the 2015 high – and then made a tentative buy signal prior to the recent Fed statement. A small T was formed and confirmed by the oscillator and we are now back filling the gap.
The small T 'conveniently' projects a peak at the same time as the large Red T structure – on about October 17. (Not necessarily a new high.)
Unfortunately, 2 short-term cycle highs are scheduled for tomorrow (+/- 2 days), and this coincides with the first arm of the current small T structure.
It is possible that the recent small T has a centre 1 or 2 days earlier due to the discrepancy between the price and the oscillator lows – therefore thursday's peak at 2180 might be an important one.
Keep an eye on the rising support lines from the February and June lows for confirmation of the trend.
Be prepared.
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