S&P 500 could drop to the 4230 area by early Monday

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SPECIAL ANNOUNCEMENT – This may be the last nightly update for up to one week, depending on market conditions. The October letters will go out the late night of Sunday, October 03.

9/30 Recap: – The S&P opened with a 12 handle gap up and then traded another 12 handles higher into a 9:32 AM high of the day.  From that high, the S&P declined 63 handles into a 12:35 PM low. From that low, the S&P zig zagged 23 handles into a 2:50 PM high.  From that high, the S&P declined 47 handles into the close.

9//30 – The major indices had a very strong down day and closed near the lows with the following closes: The DJIA – 546.80; S&P 500 – 51.92; and the Nasdaq Composite – 63.86.. 

Looking ahead  – Thursday was a very strong down day. The S&P 500 closed less than one handle above the low of the month, which was 4305.91. Based on the over-night futures trading, there is a good chance that low will be broken.  If that is the case, there is a good chance the S&P 500 could drop to the 4230 area by early Monday. In any case, we will be looking for a change in trend, probably a reversal of direction, from Friday’s price action, by early Monday.  Ideally, we want to see the market close near its high or low of the day on Friday. 

The NOW Index has moved to the BUY ALERT ZONE.  This is not an outright buy signal, but rather a cautionary signal for the bears that there is a moderate imbalance of shorts.  If you are short multiple positions, you may want to reduce your position. 

Coming Events:   

(Stocks potentially respond to all events).

4.  B. 10/01 AC – Venus Aphelion. Major change in trend Cattle, Copper, Corn, Cotton, Gold, OJ, Sugar, Wheat.

Stock market key dates

Astro –  10/1 AC

Please see below the S&P 500 10 minute chart.                     

Support  – 4305, 4230   Resistance – 4350.

Please see below the S&P 500 Daily chart

Support  – 4305, 4230, 4195   Resistance – 4350, 4380.

Please see below the Planetary Index charts with S&P 500 10 minute bars for results.

As of 9/24 we are dropping the charts market Pages 27 and Page 29.