Stock Market Rally Begins Correction

| August 12, 2017

In late April, our computer models predicted the formation of an intermediate-term low in the stock market. Further, given the bullish character of the previous advance, our models indicated that the rally would likely continue and move up to new long-term highs. The bull market resumed as expected and the S&P 500 index rallied until the middle of July. This week, an intermediate-term cycle high signal was generated by our computer models, indicating that the second half cycle high (HCH) of the cycle from April likely formed this week.

Our computer models predict that the next intermediate-term low will likely form in late August or early September. Therefore, the developing correction will likely be brief. A shallow decline into the next intermediate-term low followed by a quick move up to new long-term highs would reconfirm the bull market and forecast additional gains heading into the end of the year.

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Category: Commentary, Market Update


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