The market rips higher in September and all of a sudden we are back at 3000 and back in the Zone – the Zone that the last wave of selling started at.
As we can see those 3 important August lows with signs of divergence developing in both oscillators suggested a positive outcome as the market refused to break lower than the initial low on 05 August, revealing that the process was one of consolidation, and that patience was required.
So, back near all time highs and at a projection for an initial high from the current T structure and an active Buy Signal.
Is there more?
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As we can see in the chart below with the T volume oscillator*, the oscillator was generally recovering throughout August, hinting of an increase in liquidity and buying power, and that it has now reached a similar level as it did in the early July period – the momentum peak of the last advance.
We can see that the oscillator peaks are not usually associated with the final price highs in the advance except when these occur in bear market rallies, and we can see instead that price usually continues to advance until the oscillator starts to fade, and especially when it drops below zero, making the market vulnerable to a steep decline.
The declining oscillator can therefore be seen as profit-taking, providing the liquidity for buying the dips until such time as price becomes exhausted.
* The T volume oscillator is an indication of Buying Power within the market as a whole
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The weekly chart continues to show a bullish market within the context of the long term trajectory having found support at the long term rising angle and with price now making another attempt on the previous highs.
The oscillator continues to be weak and continues to suggest exploration of the downside ahead, but for now, with price above 2940 or so, the long term trend is still up.
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The monthly chart highlights the important resistance above coinciding with the 4 important peaks.
The Mega T structure projects another important high for October, and the oscillator remains strong supporting the possibility of new highs and perhaps ultimately a break out above that resistance line in due course.
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2019 continues to bring some fast and furious action in the market with a range that continues to be expansive. We can only assume that this will continue. This is a Brave New World.
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Regardless of whether the market can continue higher or whether significant lows are ahead of us, the simplicity of the proprietary price based S/T Signalling System continues to keep us on the correct side of the market, with price currently on a Buy Signal since 2887 on 28 August 2019
If you would like to learn more about using the S/T Signalling System please get in touch.
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Be prepared for whatever is coming next, and trade with confidence:
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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.