The market made a low on Aug 24 in Step 3 down when the DJIA plunged almost 1000 points in a single day before recovering. Since that time we have been having 4th step up in a triangular fashion with market going up and down. The high of the the 4th step may have been completed on Sept 28 or may complete soon latest by Thursday when the Federal Reserve decides whether they will increase by a 1/4 %. It really does not matter.
No matter what, the low volume recently shows we still are in a 4th step up and we need the averages to make a new low in step 5. Volatility will increase again . Not all stocks will make new lows. However , stocks which have been weak so far will become much weaker and stocks which are showing strength will lead the market up when the markets make new lows soon. Energy stocks will continue to make new lows as the fundamentals are weak and technical picture is also weak.
No matter what, the low volume recently shows we still are in a 4th step up and we need the averages to make a new low in step 5. Volatility will increase again . Not all stocks will make new lows. However , stocks which have been weak so far will become much weaker and stocks which are showing strength will lead the market up when the markets make new lows soon. Energy stocks will continue to make new lows as the fundamentals are weak and technical picture is also weak.
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