Stocks Rebound

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Stocks printed their lowest point on Monday, day 34. That places stocks in their timing band to print a daily cycle low. We still need a break above Monday’s high of 1965.15 to form a swing low. But with stocks being up almost 4 % today, a daily cycle low may have just been left behind. And I think that once a new daily cycle is confirmed,it will also signal a new intermediate cycle.

1 spx

What bothers me about labeling week 38 as a right translated intermediate cycle low is that stocks never broke out to a higher high. I think that the intermediate cycle continued to stretch, making this — week 45. The earlist a weekly swing low can form will be next week. But I believe that a weekly swing low forms, it will signal a new intermediate cycle.

And the next chart helps support this scenario.

nylows

Stocks making new 52 week lows has spiked this week. It has spike to a level that has occurred only a handful of times over the past 10 years. And each one of those times signaled a new intermediate cycle …

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4 thoughts on “Stocks Rebound

  1. LM

    Are you saying next week low will
    Be the best buying opportunity for many months/year like 2009 and we will not go low 1600 around that others are expecting in October?

    Thanks

    • We still need to see confirmation of a new daily cycle. I do plan to discuss my longer term views on stocks in the Weekend Report.

  2. The technical damage on the charts since fed day spells lower lows. The drops and pops will be violent thou. Ask many if anybody sold on Monday and they’ll say what happen cause it was so fast.

    • I believe that you are correct. Stocks are facing the gravitational pull of an impending multi-year cycle decline. In the Weekend Report we look at this on the monthly chart.

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