Short-Term (days/weeks) : modest weakness now for US equity indices, then higher

Short-Term (days/weeks) : modest weakness next week, then
higher
Key US equity indices were mostly slightly lower last week (S&P 500, Nasdaq
Composite, Nasdaq 100), turning down at resistance from the August low (S&P
500) or trend resistance from the summer high (Nasdaq Composite and Nasdaq
100) as Daily OB/OS momentum turned down at modestly or moderately
overbought. The DJIA was slightly higher, breaching resistance at the summer
lows as Daily OB/OS turned positive.
At the close on Friday, S&P 500, DJIA and Nasdaq 100 were all testing shortterm
trend support from the late September lows; Nasdaq Composite was above
next trend support. Daily OB/OS were modestly overbought.
The gap in the S&P 500 hourly bar chart at 4400 as not been closed; this still
looks like an area of upside attraction now. However, new DJIA/NYSE ITI
analogs (troughs in the 20% range) suggest modest weakness next week, then a
new rally to at least mid-November: see chart, page 2 and Daily OB/OS Charts,
attached.
Intermediate-Term (weeks/months): still negative, but final low
soon
US intermediate indicators of breadth and momentum were all sharply higher
week-on-week at the close on Thursday, including Nasdaq 100, Nasdaq
Composite and NYSE Intermediate Term Indicators, Percentage of S&P 500
Groups with Positive Money Flow and the Money Flow of the Average NYSE
Stock.
Indicators of breadth and momentum are all turning up in oversold territory.
Key US equity indices (DJIA, Nasdaq Composite and Nasdaq 100) were also all
sharply higher week-on-week at the close on Thursday : the Nasdaq 100 are
turning up around possible intermediate support and the Nasdaq Composite is
turning up at intermediate support, but the DJIA is still above next support. See
Weekly Charts, attached.
The NYSE Intermediate Term Indicator has turned up in the 20% range; in 4 of
5 analogs (80%) since Indicator inception in 1972, the DJIA was modestly
weaker the following week, then higher to at least mid-November (100% of
analogs).
The intermediate uptrend (weeks/months) for US equities remains negative,
but final low looks likely next week.