After a terrific positive run of a touch past four months, the market and my key weekly indicators
have turned down. I did get an intermediate sell signal off my 40 wk. price oscillator as well this
week. SPX weekly Sometimes the signal whipsaws, but if it does, it tends to happen very quickly.
In addition the signal can often be early, but any rallies that come along, I will play with only a
minor portion of my trading capital.
The market did move down during my cycle low window period. Whether it will bottom and bounce
or move deeper into correction is not covered now by the cycle indication and only time will tell
from a cycle point of view. There usually are tradable bounces after a cycle low, but the market is
not oversold enough to be tempting to me.
Note on the chart there is a support / earlier resistance pivot line around the 1350 area. So, as we
move into next week, we are at an important short term directional point.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!