Interim Market Report 13 October 2014

I’m taking the close on the S&P tonight at 1874 as completing a Large Contra Move. I said in the Interim Report on 11 October that it was more likely to happen than not, and 1870 would clinch it, however I think today’s move is sufficient:

 

Screenshot 2015-03-02 14.25.40

 

This is a medium-term sell signal as covered in Essential Technical Analysis and Point & Figure MasterClass. The only way to negate the signal now would be a move to a new all-time high fairly soon, and I can’t see that happening. We have a very oversold condition in the short-term with an extension of -4.7% which needs to unwind with a technical bounce, but following that it is highly likely that it will continue lower and develop into a bear leg.

 

(c) Robert Newgrosh 2014

 

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Oct 13, 2014