As expected the market has been going down in step 5 from the highs established  a week ago.

The same is true of European markets and Tokyo market . If you look at the chart of SPY, in the step 5 , it should go below the low established  on Aug. 24  as a minimum. It should go even lower. We expect cash SPX  to go as low as below 1800.
Oil is going lower and that is why Energy stocks are  going lower and Natural gas is also going lower.

Gold continues to go higher after some consolidation  the last 5 days.
Look at the indexes in Europe. They are all down.

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As we had pointed out in our Blog of  Sept 17, the market started moving down after making an intraday high based upon no change in interest rates by the Federal Reserve.
The decline in 5th step down to new lows  will happen over a two week period.
The 5th step down have 5 sub steps down also and we may have completed Step 1 down and step 2 up yesterday  or it may do so soon. The larger decline will  now happen in sub step 3 down.


Gold has had a good rally but it is not over yet. There will be some consolidation here
Energy stocks will  go even lower,
Natural Gas is also going down and DGAZ made a new high yesterday and will have consolidation here.
See what is happening in Europe. It will now happen to our markets

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Today is the day when the Federal Reserve will announce whether they will increase the rate by 1/4 % or not.
After a 3 week rally starting from August 24 lows, we are ready to go down to new lows in Step 5 down

Gold and Silver have started a rally in Step 5 up and Gold can go up above $1300 or so.

Energy stocks will also start going down.

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The market has been going up in the last 4 days on low volume. The rally is almost over and any upward move will be short lived. The insiders bought heavily at lows on Aug 24 & 25 and have been distributing shares to the lambs in the last 3 weeks.

Gold has started moving up again with NUGT up almost 10% today. It will continue to go upto $1250 or more. Oil is having a rally in 4th step up and it will start going down again.

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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.

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