Exciting day tomorrow! Why? It’s October. The time for making money, avoiding the cold and…..making more money!!! Yep, its typically the start of the best season of trading all year round.
Now boy do I have a treat for you tonight. The potential answer to where we are going next in the market. Tomorrow is the first day of October and one thing everyone might not know is that the first day of the month and option expiration Friday (third Friday of the month) are very important as often key turning points are established on these days. In the graph below for example you will notice that the last two major turning points on the S&P were on those days exactly.
So! Tomorrow brings another month around and at the same time we are about to touch on the 23.6% Fibonacci line as well as the uptrend line forming the bottom of the Rising wedge.
Predictions? Well i think that if we hold these two levels we are in store for another leg up in the market testing 1,720 – 1,740. Longer term prediction….. that will be the last high we see before a correction.
If we hold ….. its “short term long hunting season..” (Wish I could do an Elmer Fudd impression better than that.. but you get the jist).