The bull and bear bronze statue stands outside the stock market, Deutsche Boerse AG, in Frankfurt, Germany.Michael Probst/The Associated Press
Globe editors have posted this research report with permission of Phases & Cycles Inc. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following is excerpted from the report:
August 24th's action clearly indicated a "selling climax", but probably not "the" selling climax. A potential October low could occur either with a successful retest of the recent low (the next decline does not go lower than the August low), or with a decline that reaches a slightly lower low before the next up-leg. Both of these have occurred in the past (the 2011 low was of the latter variety).
Either way, we expect that the next up-leg (Leg 5) will eventually unfold, since both the cyclical, secular and sentiment trends point upward.
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