|S&P Seasonal Chart Courtesy seasonalcharts.com|
Check out this little seasonal model. SPX tends to form a Reverse Symmetrical Triangle (reversal) pattern after a toppy summer right into Wall Street's Q4 bonus season.
I will allow for one more dunk to new lows (per the late October down-spike circled, but I cannot see how I can be bearish after that. Seasonals, improving valuations and the stuff we reviewed in NFTRH153 on sentiment and T bonds, are making me feel greedy; greedy and bullish, pending a bottom.
Would it not be sweet to get a final and scary dump in October, right on cue? This scenario has the crowd being setup once again. You have got to love the markets.