Friday's closing market commentary can be viewed here.
We saw that whopper buying spree that we forecast but the ongoing situation is actually cloudy.
Odds for continued bullish activity are strongest for Monday and Tuesday as the last and first trading days of the month. After that the September sigma looms but we all know that news surprises have what's been driving the markets for the past 4 months so anything can happen.
I do not like the parallel downslope VDI + and - signals on all three charts...this has resulted in selling in recent past instances. For now we just play our models....which have performed well in the face of recent market turmoil. After all the panic over China (FXI is the top 25 Chinese stocks...think Chinese Dow) really nothing fundamental has changed other than a devaluation of the yuan by 3 % and a modest lightening of interest rates. The endemic contraction of the economy remains a real issue and we could easily see a couple more legs down before a real uptrend sets in.