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Martin Armstrong: The Dow

* September 1, 2015

The failure of the Dow to close above 17007 confirms that we are not yet ready to take off to the upside. We needed a closing ABOVE 17007 to firm up the market to state definitively that the August low will hold and new highs are ahead. We needed a minimum closing ABOVE 16632 to firm up short-term support. The closing BELOW 16632 does not provide a Monthly Sell Signal; it is a warning that the Dow remains vulnerable going into September. Only a monthly closing BELOW 15550 would have been a MAJOR SELL SIGNAL that key support has held. Consequently, the close of August was not strong enough to avoid a retest of the lows. Therefore, the Dow did not finish in a position that would imply NEW LOWS ahead just yet and there was no confirmation of a bullish development.

The forecast array showed the week of the 24th as a Panic. However, the long-term turning point targets are for the week of the September 21. That will more likely than not now become an important turning point as it grows in intensity. This is not over until Obama sings.

http://www.armstrongeconomics.com/archives/36762

- George.

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