Most of this past spring, I talked about the need for a longer-term corrective pattern that would take us into the fall. It is my belief that we have been in this corrective phase for the last six months, if we use a monthly closing price chart. My guess is that we have completed the first two waves of a three wave pattern. October began the third wave of this formation.
Over the next few weeks, I plan to revisit some of my comments from this past spring, and discuss how many of them played out. Many of these same concepts will be important as we consider the future movement of the U. S. equity markets. These include the throw-over of the trend channel that we saw from May to July, the divergences of momentum oscillators that took place through much of this same time, and other technical tools that have provided meaningful information as things have unfolded.
I hope that you will find the discussion useful.
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