3 years ago

October the Bear killer, then November.

Based on historical evidence the month of October has risen in the past 18 of 23 years. The 5 down years are during a bear phase of the markets so are in line with the general direction of the Index.

This month of October so far the index has risen 329 points, a nice little run.
In the past 3 years the month of November has lost an average of 250 points in the first 3 weeks.
Considering the Index ( shown ) has today topped at 5384 points the exact point of the breakdown level on August 12th 2015, this suggests weakness in the next week if not this week.
This is now the inflection point 5385, only a close over this level would negate the short term bear view.
The chart shows in the past as resistance levels are challenged and fail can lead to a very quick sell off.

XJO Daily