Today is the Fall Equinox and the markets are extended. I have found that the spring and fall turns usually do not affect the market significantly – unless the market plans to change direction anyway. The same can be said for full or new moons. If the market plans to turn it will do it with the extremes of the moon cycle. If we think back to all the turns in the past several years, few have come on moon or equinox cycles. But the ones that did turn on those cycles were significant.
The SP500 Index (SPX) has shown two days of lower volume as the time cycle from the March low to the June high completed. A strong blow off high is not out of the question here as I see everyone and their stupid cousin changing from bears to bulls. A minimum correction I see would be back to the parallel angle near 960.
A similar angle can be seen on the Nasdaq Composite (COMPQ) chart.
The NYSE Advance minus Decline 10 day moving average has already become overbought and started to roll over showing a loss of breath at the highs.
Charts courtesy of Stockcharts.com
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Tags: Market Cycles2 Comments
I liked that one. That’s what the market needs to put in a top
“A strong blow off high is not out of the question here as I see everyone and their stupid cousin changing from bears to bulls.”
Out of the 28 total hourly bars (last 4 days) on QQQQ, I see only 2 good bars, 1 neutral, and rest are either selling or spurring on demand like they do at auctions. Ditstribution is in full swing.