Short-Term (days/weeks): although modest price weakness last week was unexpected, the short-term outlook remains positive for US equity indices.

Short-Term (days/weeks) : positive
Key US equity indices were all unexpectedly modestly lower last week, turning
down at resistance as Daily OB/OS momentum indicators turned down at
moderately overbought.
At the close on Friday, indices were turning up at or near short-term support;
Daily OB/OS momentum indicators were very modestly overbought (S&P 500,
DJIA, Nasdaq Composite) or modestly overbought (Nasdaq 100).
New, best-fit DJIA/NY SE ITI analogs (troughs in the 50% range) suggest that
modest weakness last week should be used as a buying opportunity and point to
price strength to early October for the DJIA/S&P 500 : see analog chart, page 2.
DJIA Pre-Election Year analogs (average of best) also point to a rally from now
and strength to late October: see analog chart, page 3.
So, although modest price weakness last week was unexpected, the short-term
outlook remains positive. See Daily OB/OS Charts, attached.
Intermediate-Term (weeks/months): positive
US intermediate indicators of breadth and momentum were unexpectedly all
lower week-on-week at the close on Thursday, including NYSE, Nasdaq 100
and Nasdaq Composite Intermediate Term Indicators, the Percentage of S&P
500 Groups with Positive Money Flow and Money Flow of the Average NYSE
Stock.
Indicators mostly accelerated lower and now range from neutral (Nasdaq 100
Intermediate Term Indicator) to modestly oversold (NYSE and Nasdaq
Composite ITI’s, Money Flow of the Average NYSE Stock) to moderately
oversold (Percentage of S&P 500 Groups with Positive Money Flow).
Key US equity indices were also all unexpectedly lower week-on-week at the
close on Thursday ; the Nasdaq Composite and Nasdaq 100 both accelerated
lower, turning down at resistance and now testing support from the 2022 lows.
See Weekly Charts, attached.
Lower intermediate indicators accompanied by equity index weakness was
unexpected. However, key indices are at or near intermediate support, indicators
are neutral to moderately oversold already and analogs suggest strength to mid/
late October: see charts, pages 2-3.
The intermediate outlook (weeks/months) for US equities is positive.