If last Friday (11/13/15) was the low of the November 3rd sell-off, it was two days later than the forecast from my Hybrid Lindsay model. If today (11/16/15) is the low, it will be three trading days late. Both dates are within the margin of error of the model.
Internal metrics describe an oversold market primed for a bounce but how long will the bounce persist?
The next Hybrid forecast for a high is 11/23/15. I previously wrote that, as this date is the beginning of the US Thanksgiving holiday week, the high may come later than expected given that week’s seasonal bullishness. I’m no longer quite so confident about that high coming late. November 23 seems to be the convergence date of several Lindsay and cycle model forecasts. In addition, Option expiration is this Friday, 11/20/15. Markets have rallied into OPEX for most of 2015 only to give up much of that rally in the days following expiration.
To get your copy of the November Lindsay Report click here.
