Stocks rose Tuesday, September 18th on narrow upside breadth and modest volume. The Industrials look to be working toward the completion of a Rising Bearish Wedge, and the final wav e-up for that pattern from July 2018 needed another small rally leg. That appears to be going on now. The S&P 500 and NASDAQ 100 did not rise above their recent Rising Bearish Wedge tops, so the rally Tuesday could be correcting the start of the next large degree wave down. We did not get any changes to our key trend-finder indicators from Tuesday’s rally. The Blue Chip, Tech and small cap Russell 2000 Purchasing Power Indicators remain on a Sell signal Tuesday.
The stock market generated its 13th Hindenburg Omen observation Tuesday for the official H.O. from August 14th. It was the 11th day in a row for an H.O. observation, which is unprecedented. This tells us the stock market sits in a fragile condition at this time, and is susceptible to a strong selloff should a black swan trigger event occur.