(sorry no link–but you can go to stockcharts.com and call it up)

And besides that the witching month is coming.  Every October 19 we start twitching.  It’s like passing the haunted house on the way home from trick or treating.  The PnF chart above is not the only one predicting 1900 on the S&P.  Some heavy Wall Street Houses have muttered the same number.  Maybe they got it from this chart.  (Probably.)  At any rate we have prevously pointed out that the PnF method doesn’t forecast any time, nor does it predict how much grief and pain will be suffered on the way to that number.

So we do what we always do:  Focus on the present.  We can’t know the future, but  we can know what to do right now.

We just analyze the chart, which has some interesting new features.

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=9&dy=0&id=p20049953156&a=214966864

You will note that a new Basing Point has occurred and that has caused the raising of the trend stop to 1529.82.  We could joke and say that the purpose of downwaves is to furnish us with Basing Points — or that they are to eject the unwashed from the market.  Both would be true.  Or it could just be that the market has anthropomorphic character and is a sado-masochist.

We will be speaking at the October Conferences of IFTA and AAPTA in San Francisco.  Check their websites for details.