The cycle labeling of the DOW and S&P 500 are still in question, so we will stay with our analysis of the NASDAQ 100 (E-Mini, Dec. contract chart) for our general assessment of the broad stock market for now.
All three indices peaked last Monday, but none exceeded their early Sept. high. After falling into Thursday, each index attempted a rally on Friday, but then they all lost their momentum and backed down a bit at the closing bell. Those Monday highs could be significant tops as they happened in the center of a strong reversal zone. However, there was no bearish divergence between the indices (which we like to see at a top), so it's possible for any one (or all three) to push higher this week.
The NASDAQ 100 (Dec. contract chart) most likely started a new medium-term cycle with its low of 10,656 on Sept. 21. It is early in this cycle, but not too early for at least a sub-cycle peak and corrective dip. The high of 12,249 on Monday could have been that peak, unless it pushes higher this week. If this market's trend is bullish, a corrective dip shouldn't go too low and may be a good spot to buy. Around 11,500 might be a good target. A stronger bullish sign would be to see a rally this week above the last cycle high (12,449 on Sept.2). In that case, we would have to wait a bit longer for a sub-cycle correction to buy. I think this market wants to rally into the presidential election. Wall Street seems to like Trump, so his re-election could keep things bullish for awhile (but probably not for long as this market is overdue for a major correction). A Biden win, however, might trigger some sort of sell-off (although it might only be a short corrective dip). We are still on the sidelines of this market.