market juncture

  1. 1,383 Posts.
    Now I am in a bit of a quandary. Since March I have been calling for a new high, and everything I know about charts tells me this is on track. I can see buys everywhere. Many stocks have reverse head and shoulders on them, promising very good rises. I even bought banks today, despite the potential nasty formation on ANZ.

    However- looking back through the years, I confirm that September is an awful month, usually down and at best flat. Only twice in the last 16 years has it been bullish - and that was - er - in 1987 and 1997 (and in the latter case, August was bad).

    The market has also now hit some key resistances. XAO is hitting the bottom of the old bull channel. XJO has hit the 61.8% pullback. If it moves up from here as it should - the bear market is officially over. (pity I still cant post charts on the current generation Hotcopper).

    So - what happens here? I would be much happier to see a Sep pullback or consolidation as bullish Seps are not nice.
 
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