While we do recognize the potential trend higher in the short term, we do not yet see the longer term primary trend change to the downside being threatened at this point. I have stated since August that the long term evidence suggested the that the July/August decline in the markets had done enough damage to the cyclical bull market to indicate a change of the primary trend to the downside. That conclusion is drawn by observing multiple indicators acting in unison.
Although the RSI has recovered from its mid-line break to the downside, the price of the S&P 500 remains below a downward sloping 10 month moving average and the MACD continues to reflect a change to the longer term momentum. Coordinated global central bank action has changed the direction of price in the short term. But it remains to be seen if it can successfully alter the primary trend direction. Can they really fix this problem by throwing more money at it?
(Download PDF Report Here)
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Financial Markets Update
While we do recognize the potential trend higher in the short term, we do not yet see the longer term primary trend change to the downside being threatened at this point. I have stated since August that the long term evidence suggested the that the July/August decline in the markets had done enough damage to the cyclical bull market to indicate a change of the primary trend to the downside. That conclusion is drawn by observing multiple indicators acting in unison.
Although the RSI has recovered from its mid-line break to the downside, the price of the S&P 500 remains below a downward sloping 10 month moving average and the MACD continues to reflect a change to the longer term momentum. Coordinated global central bank action has changed the direction of price in the short term. But it remains to be seen if it can successfully alter the primary trend direction. Can they really fix this problem by throwing more money at it?
(Download PDF Report Here)
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