Stock Market Attempts to Form Intermediate-term Low

| September 2, 2017

In late August, our computer models identified the potential formation of a short-term low in the stock market. After consolidating for several sessions, the S&P 500 index advanced sharply this week, confirming that a new short-term cycle is in progress.

Additionally, the latest short-term low formed very close to the window during which our computer models have predicted that the latest intermediate-term low is likely to occur, and we are now on the verge of an intermediate-term cycle low signal.

A close above 2,477 on Friday next week would generate a confirmed intermediate-term cycle low signal and indicate that the latest intermediate-term low likely formed during the week ending August 25. The formation of the latest intermediate-term low well above the previous low in April followed by a strong advance up to new highs would reconfirm the long-term uptrend and forecast additional gains in September and October. Therefore, it will be important to monitor market behavior closely next week.

Share on FacebookShare on TwitterShare on LinkedInShare via email

Tags:

Category: Commentary, Market Update


Comments are closed.