Markets have been trading without any direction recently, and with the end of the month coming up I have postponed my weekly blog post by a few days to get out the new LT wave chart today.
When stocks move in such a narrow range there is of course little or no space for the lunar cycles to show up. But it still worked out quite well. Here is the LT wave chart for September, also showing what we got in August:
Expected strength in early August showed up right on time and did push the S&P 500 to new record highs. Taking profits on the 5th or 8th, as we suggested, turned out to be a good idea because we didn’t miss much for the remainder of the months. Stocks went into sideways consolidation until a low on the 26th, the final of 3 bottom values in our LT wave. Renewed strength in the final days of the month did not materialize.
For September the LT wave suggests a strong first week with highest LT wave value coming on the 3rd. This could be enough to send indexes to another record. The strong period ends around the 6th and is followed by a weaker period until the 25th. Final days of September look better again.
As always, remember that this method is experimental and will not work equally well every month.
Next Monday we will follow up with our weekly chart analysis, as usual.