Blue October Mood Indicator

The weekly MMI charts (below) are showing the signature of a sharp drop alert (SDA) over the next three weeks (overbought +flatline).  This does not imply a three week downtrend.  It means that conditions are favorable for sudden, steep market drop(s) at any time over the next three weeks.

In reviewing the weekly mood patterns, I was not able to make out anything clear.  However, looking at the monthly social mood chart (below), there are a couple of significant indications for October.  1) October is part of a correction within a larger bull market (high Expansive is typical within a bull market), and 2) There is significant focus on government and/or geopolitical issues along with other crises or disasters (per Manic/Controlled close together with Controlled higher).  This month is set to be quite intense in many respects.  Hold on to your hats!

Dr. Cari Bourette is an analyst at ElliottWaveTrader.net, where she provides her proprietary market mood analysis in our flagship service, "Avi's Market Alerts."