The buy signal as depicted by the green line below has lifted the market out of its decline. Whereas the correction has fulfilled its requirement in time, it did not do so in price. One more leg down was expected, but sentiment has turned so bearish that a low is likely already in place. In addition, the advance-decline line is close to making a new high.
S&P 500 Monthly Cycle
Citigroup’s weekly cycle turns up now. Four of the last five buy signals have been effective in the last year. The last decline did not break below the mid-August low, and momentum appears constructive. The stock is likely to rise to the high 60s.
Chart 1
Chart 2
Below, we see the monthly cycle for Apple. There have been four buy signals in the last twelve months and all have been effective. September has seasonally been the weakest month of the year, but the monthly cycle upturn is likely to override this tendency. Relative strength has been strong, and daily momentum is bullish. New highs are due.
Chart 3
Chart 4
