The third quarter ends on a negative note at prices that are near the lowest levels of the year. Will this downward trend continue in the fourth and final quarter of the year? The twelve year secular uptrend is also on the edge of turning down. Sentiment and breadth measures are becoming oversold and are at levels that could produce a rally.
This Power Charting episode considers the scenarios that would precede a continuation of the decline. Also the precondition that would signal a reversal and rally. The episode concludes with an analog of the 2018 4th quarter decline with comparison to the current market.
Symbols: SPY $SPX $NDX $COMPQ $NYA TLT UUP
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