Market Direction Weekly Closing Numbers

The economy

This morning stock market decline triggered the proprietary models to suggest to followers to consider taking some profit. This past week's roller coaster will continue to be monitored and if an alert change occurs we will let you know.

In general, the market operates in one of three modes:

• Trending
• Trendless
• Reversing

The media and many market pundits tend to focus on only one or two modes (trending and reversing). That's why most headlines either foresee a crash or a rally. Investors want to see action, not boredom.

Nobody wants to read headlines like: "The market won't go anywhere for the next few months." But the reality is that stocks can be trendless for days, weeks, months, even years.

Is the S&P 500 about to break down and exit the dark-gray-box trading range?

This projection has played out thus far, and it's tempting to assume further down side.

However, the S&P is just above the support zone around 2,040 and the hourly chart shows a bullish divergence on the relative-strength index (RSI). The blue ovals highlight what happened the last times we saw bullish RSI divergences.

If the S&P can maintain the bullish RSI divergence and stay above 2040+/-, there is a good chance we'll see another rally leg. But even if we see another rally leg, it is likely to be short lived.

It seems like we will see a deeper correction (break down) sooner or later. The question is when exactly and how deep of a correction?

The longer-term S&P 500 forecast available here shows how the latest market moves mean for the months ahead.

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By the numbers the weekly closing index numbers compared to the initial sign-up and subscribe recommendation closing numbers: 

Stock Market Closing Numbers
compared to Recommendation Numbers
	?/?/?	?/?/?	Variance
Dow Jones	?	?	?
Nasdaq	?	?	?
S&P 500	?	?	?

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