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.

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Category: Commentary, Market Update

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