The All New Market Analysis, October 3rd

SPX Monitoring purposes; Long SPX on 9/27/18 at 2914.

Monitoring purposes GOLD: Long GDX at 18.72 on 8/17/18

Long Term Trend SPX monitor purposes; Sold long term SPX 7/16/18 at 2798.43= gain 2.95%; Long 6/29/18 at 2718.37.

The chart above is the New lows for the NYSE.  SPX has been holding steady while the NYSE new lows reached above 150.  Previous times going back a year and half when the New Lows hit 150 and higher the market was at a low.  This time it could be different but market could be consolidating going sideways and building energy for the next rally higher.  Not seeing a lot of optimisms in Put/Call ratio and Ticks have not reached extremes which would suggests a top is not far off. Still looking for a test of the September 21 high of 2940.91 on the SPX and see what happens there if tested.

Friday the Index Put/Call ratio closed at 1.61 and yesterday at 1.39 (still near bullish levels).  We have market the times when the index Put/Call ratio closed near 1.40 and above going back to early March.  In all but one case When the Index Put/Call ratio closed near 1.40 the market was near a short term low.  We are still looking for a test of the previous high on the SPX (2940.91) which so far has not been touched.  Long SPX on 9/27/18 at 2914.

The bottom window is the Advance/Decline with an 18 period moving average and above that is the Up Down Volume with 18 period moving average.  Readings below “0” are bearish and above bullish. These indicators closed above “0” yesterday and most likely gained ground today (indicators will be updated later tonight).  Over the last couple of weeks these indicators has been hovering near the “0” line suggests energy is building for the next move which with today’s strong GDX rally appears will be up. Today’s strong GDX rally produced a “Sign of Strength” through a resistance line, suggesting a confirmed breakout.  The pattern that appeared to have formed is a Head and Shoulders bottom which has a measured target near the 21.00 range on GDX.  Long GDX at 18.72 on 8/17/18.