By Investor’s Yak
Action Zone (AZ) observations for the Market (S&P500, NASDAQ, Russell 2000, and Dow Jones Industrial Average):
- Daily AZ’s are extended, and prices could therefore encounter a slight pullback.
- Weekly Charts are setting up AZ #2 momentums, but AZ #3 price conviction is still questionable
- Monthly Charts, which are incomplete for October, are triggering AZ #1 and setting up AZ #2.
Presently it is important to monitor market progress for signs pointing to either a bull or bear trend. But keep in mind, weekly and monthly charts do not support day trading success very well. We will be examining the market in the coming weeks and months to determine which of the following scenarios play out.
- Bull rally above the 200 DMA which exceeds the 52 week price highs.
- Stalling rally above the 200 DMA which is arrested at or below the present 52 week price highs.
- Weak rally blocked at or near the 200 DMA.
- Pullback consolidation testing prior August or September price lows followed by an end of year rally.
- Bear pullback busting below prior August 24, 2015 price lows.
Event calendar affecting markets in October
8 October – FEDs September Meeting Minutes
9-11 October –possible IMF announcement of China as a world Reserve Currency
27-28 October – Fed meeting
29 October – Third Quarter GDP Report
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