*Please make sure you understand how to use the table above. The purpose of this report is to provide info so contradictory signals are always presented.
SHORT-TERM: KEY DAY TOMORROW
As mentioned in today’s After Bell Quick Summary, according to the past FOMC red day pattern, we need a green day tomorrow to avoid further pullbacks. The question is, will we have a green day tomorrow? I have no idea (well, I know you know I’d say that. LOL). However, the very unique thing I noticed is TICK closed below –840 which looks very ominous. As illustrated in the chart below, normally such kind of so negative close should only occur on a big red day, while today SPX is just a small red, so the question is why TICK closed so negative? In another word is that people rushed to the exit right before the close, why was that? Could be some bad news awaiting us tomorrow?
For short-term still suggest not getting to bullish. Besides the 09/21 to 09/23 time window and 1.0.0 S&P 500 SPDRs (SPY 60 min) showing lots of negative divergences, there’re 2 additional bad signs today:
6.4.3a SPY Bearish Reversal Day Watch, as long as we’re not repeating what happened in April, a top of some kind should be close.
INTERMEDIATE-TERM: STATISTICALLY BULLISH FOR THE NEXT 2 WEEKS
We could see 2 to 3 legs up while now is the very first leg up. See 09/17 Market Recap for more details.
SEASONALITY: WEEK AFTER SEPTEMBER TRIPLE WITCHING DOW DOWN 6 OF LAST 7
According to Stock Trader’s Almanac, week after September Triple Witching, Dow down 6 of last 7. Five in a row 2002 – 2006 with heavy losses 2002 – 2005. Also see September’s Triple Witching for more statistics.
HIGHLIGHTS OF THE OTHER ETFS IN MY PUBLIC CHART LIST
|TREND||COMMENT – *New update. Click BLUE to see chart if link is not provided.|
|QQQQ||UP||4.1.1 Nasdaq 100 Index (Weekly): NDX to SPX ratio too high.|
|EMERGING||UP||4.1.6 iShares MSCI Emerging Markets (EEM Weekly): EEM to SPX ratio too high.|
|EUROPEAN||UP||*Black bar, pullback?|
|CANADA||*LA||TOADV MA(10) too high plus lots of reversal like bars, pullback?|
|GDX||*UP||4.3.1 Market Vectors Gold Miners (GDX Weekly): GDX to SPX ratio too high and Bearish Engulfing.|
|FINANCIALS||*LA||4.4.2 Financials Select Sector SPDR (XLF Weekly): Head and Shoulders Top in the forming?|
|REITS||*LA||4.4.3 Real Estate iShares (IYR Weekly): Home builder is lagging and IYR to SPX ratio too high.|
*LA = Lateral Trend.