[isatrader]

Attached is the updated monthly US equity index charts for a longer term perspective.

Note: We've now had two months where the price has pushed down and failed to close near the low. In fact this month looks set to close near the high, and the moving average breadth measures have made a higher low than the August bottom. Hence a positive divergence in the breadth versus the price action. So we could have seen a significant low in the last months, as more breadth measures moved to bullish status this week.

So based on the breadth imo it's suggestive that we could be in Stage 4B- currently, which is when the market is not yet “officially” in Stage 1A, but could possibly have now seen its low for the cycle. However, this is a very tentative Stage and so it is just recommended for short term traders to make some cautious test buys on the long side in potential new leaders, as we are still a long way from favourable conditions for the investor method, and could easily still rollover and resume the Stage 4 downtrend.

As always, this is just my opinion of the breadth and price action and where we are at currently, but you should make up your own opinion of the current Stage based on your own analysis of the charts and data, as you shouldn't let anyone influence your trades.

US Stock Indexes - Monthly Charts