BRIEF COMMENT ON THE BROAD STOCK MARKET (12:30 pm EST)
It appears that U.S./China "trade wars" are spooking equity markets and pushing the DOW, S&P 500 and NASDAQ indices down into this week's reversal zone. It's very possible that the medium-term cycles in the S&P 500 and NASDAQ topped out last week and are now falling to their final cycle bottoms. If so, we could see more steep plunging for the rest of the week and even into early next week. That seems to be the pattern unfolding, but because this reversal zone extends into next Tuesday, there is still time for the market to rally some more and make a new top before the reversal period ends. We will have to wait and see how these indices move into the end of the week. As I stated in Sunday's blog, new highs would give us a good shorting opportunity, but more than likely we will be looking to buy at the bottom of these cycles this week or early next week. Still on the sidelines of the broad stock market.
It appears that U.S./China "trade wars" are spooking equity markets and pushing the DOW, S&P 500 and NASDAQ indices down into this week's reversal zone. It's very possible that the medium-term cycles in the S&P 500 and NASDAQ topped out last week and are now falling to their final cycle bottoms. If so, we could see more steep plunging for the rest of the week and even into early next week. That seems to be the pattern unfolding, but because this reversal zone extends into next Tuesday, there is still time for the market to rally some more and make a new top before the reversal period ends. We will have to wait and see how these indices move into the end of the week. As I stated in Sunday's blog, new highs would give us a good shorting opportunity, but more than likely we will be looking to buy at the bottom of these cycles this week or early next week. Still on the sidelines of the broad stock market.
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