Wednesday, September 23, 2015

SPX, INDU, TRAN, AAPL: The Market Closes in on New Clues

I'm going to let the charts do most of the talking for this update.

First up is TRAN, which is approaching a key overlap.  Note that a break at the overlap still allows the ultra-bullish potential of a nested 1-2 count, but a sustained break would suggest that perhaps the rally was a complete fourth wave (bear 4):

A few folks have asked if there's a count that allows a new low, followed by a new high.  I've been publishing this chart as is for a while, but I'm highlighting it again for folks who missed this last time:

Apple presents an interesting chart, because this pattern shows a ton of buyers were waiting at that last dip.  A breakdown of the crash low would thus be very bearish (because it would show that buyers exhausted themselves in one fell swoop), but until that happens, this chart is at least a warning to AAPL bears:

Next is the SPX near-term preferred count.  The pattern at least allows the possibility for a complete c-wave decline, even if that may be less probable:

In conclusion, the market is at an inflection point that could provide additional big picture clues over the next few sessions.  Trade safe.

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