Stocks Approach Trend Shift Point
WATCHING STOCKS APPROACH TREND SHIFT POINT
Continued declines have pushed stocks close to a trend shift point as shown on the chart below:
As October is historically a month of both declines and beginnings of bull markets I’d expect one of these two price lines to be a bottom.
The bull market that has been the stock market for the last year makes me choose the lowest price line (1640)as the one most likely to hold the bull market trend intact. If prices break below 1800 in the S&P 500, prices will have little to hold them back from 1640. – George