Stock Market Topped Thursday, Now What?

By: Brad Gudgeon | Sat, Sep 19, 2015
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Last week, I predicted an important top for September 17 based on astrology. While I thought it would be a lower top, nonetheless, it was an important top caused by the FED: and as predicted, I said that they would not raise rates, but they did place something in the FED-speak that would cause the market to sell-off dramatically. That something was "no more QE". From late Thursday to late Friday, the SPX fell over 4%.

Friday left the stock market fairly oversold on a short term basis: the TRIN ended at 2.81, the Gann cycles bottomed and there were signs of minor momentum divergences that should launch us into an a-b-c type up-down-up week ahead. The astro-cycles look fairly negative for the week after next, but not ominous. The expected move to take out the lows of August 24/25 lows is coming. I have Sept. 30th and Oct 2nd being important dates for lows. I expect that SPX 1850 will be tested. Once 1850 is tested, I believe we see a strong rally throughout much of October that should take out Thursday's high. This is where it gets interesting.

In the past few months, I shared what I call the coming IMP pattern (which we are now in). The charts below show what I believe is ahead into early October and beyond into early November. The biggest portion of the down move is still dead ahead! Also below, I have included a chart of GDX, which I expected to rally through this period we are in now. I have amended it further suggesting after a period of softness early next week, that gold and GDX should continue to rise into late September before succumbing to weakness caused by the expected drop in the stock market.

S&P500 Hourly Chart
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S&P500 Daily Chart
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GDX Divergences 4-Hour Chart Chart
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Brad Gudgeon, editor and author of the BluStar Market Timer, is a market veteran of over 30 years. The subscription website is www.blustarmarkettimer.info

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Brad Gudgeon

Author: Brad Gudgeon

Brad Gudgeon
BluStar Market Timer
Blog
eaglesoveramerica.com

BluStar Market Timer Investment Philosophy: The stock market is currently in a technical Elliott Wave Bear Market Rally. It has been exhibiting A-B-C type waves instead of the normal 5 Waves since the market topped in 2000. According to "The Original Works of R.N. Elliott", we are due for a move down to about the S&P 500 442/443 area in the next few years. In my opinion, this is no longer a buy and hold market, but a traders' market. We mainly swing trade the market with funds and ETF's, but otherwise trade according to the market's disposition and to the traders' discretion. For the year 2014, BluStar Market Timer is rated #1 according to Timer Trac. http://www.blustarmarkettimer.info

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