The broad stock market MAY be stabilizing and finding a bottom this week or next as we remain in a general reversal zone through Oct. 6 (next Thursday). Although the DOW and S&P 500 have broken below the starting points of their current medium-term cycles, the NASDAQ is still just a tad above the start of its medium-term cycle, so we still have a bullish divergence signal here. Even if that low breaks in the NASDAQ, all three indices may still find support at the round number levels of 29,000, 3,600, and 10,500 in the DOW, S&P 500, and NASDAQ, respectively. If they don't by Thursday next week, it will be a very bearish development, and we could see a severe sell-off in equities. Of course, even a reversal and a bounce now would not turn us bullish, as we would see any short-term rally as an opportunity to sell short at its top. Let's remain on the sidelines for now and see if that rally materializes.
Gold and silver both rallied this week, but not enough to turn them even short-term bullish. We remain on the sidelines of both metals for now.
Crude oil also rallied early this week, but prices may be turning down now around the 15-day moving average (around $83 and falling - Nov. contract chart). Let' remain on the sidelines of this commodity until the medium-term cycle is more clearly defined.