<b>Today’s Blue Chip Stock Market Comments:</b>
Stocks fell sharply Thursday October 3rd. The Violence at the White House around 2:00 pm EDT Thursday fed an already down day, but the internals tell us that the PPT was concerned that a plunge could evolve, so bought the market hard, preventing a collapse in prices. Demand Power fell 7 while Supply Pressure rose 10, telling us Thursday’s decline was strong. Volume was average for the past 10 days. PPT buying prevented a 90 percent panic selling down day from occurring. That is important because had a 90 percent down day occurred, the odds increase that a bottom is near. There was a stock market buy signal set-up from the VIX Thursday, as it closed above the upper 2 standard deviation Bollinger Band boundary. Once the VIX closes back inside the bands, it will trigger a new stock market buy signal. Those buy signals have been pretty good at identifying short-term bottoms that lead to nice tradable rising trends.
Short-term, stocks are working through a correction inside large degree wave <b>c-</b>up. There are two possible patterns for <b>c-</b>up, one is a Rising Bearish Wedge, which would mean a lower upside, or an impulsive five wave rally, implying a much higher upside. In either case, this coming top will be the end of a Bull market that has lasted for centuries. Then the Coming Economic Ice Age begins.
The stress we are seeing in the daily news from Washington’s shutdown, the anger, the rage, is just a small glimpse of what financial stress could look like from this coming economic collapse. McH.