Potential Lunar Signal October – 2021

Occasionally full/new moons can signal market tops/bottoms.  On 09/07/21 the Nasdaq Composite (IXIC) made a new all-time high unconfirmed by the other two main US stock indices, S&P 500 (SPX) and Dow Jones Industrial Average (DJI).  I call this a “Rule of the Majority” signal – when one of the three main stock indices makes a high/low unconfirmed by the other two indices, the truth is with the unconfirming indices.

On 09/07/21 the truth was with the SPX and DJI bearish divergences implying the trend could be turning down.

Toady 10/20/21 the DJI made a new all-time high unconfirmed by the IXIC and SPX.

The daily DJI/IXIC chart courtesy of Trading View illustrates the September and potential October signals.

The September “Rule of the Majority” signal came on a new moon.  Toady’s signal came on a full moon.  This implies the trend could be turning down.  There are only seven -trading days remaining in the October prime bearish time zone – the potential decline could be brief, maybe terminating at the end of October.   

Traders are 50% short as of the SPX 10/20/20 open.  Hold short.  

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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