Treasuries, US Dollar and Stocks have potential to turn next week

The path of least resistance remains to the downside, and while early Monday reversal attempts looked initially encouraging, the late day pullback towards lows of the session should offer market Bears a bit more profits before a real trend reversal.  Factors such as bearish sentiment, the start of volume and breadth dislocation, and oversold conditions in various momentum indicators are initial reasons for hope for the Bulls.  However, much of this timing largely resides in three key methods:  1) Cycles 2) Elliott-wave analysis 3) DeMark exhaustion signals.  The combination of these when eyeing duration of wave movement and lining that up with potential DeMark exhaustion directly lines up with two of my cycle composites for a bottom in risk assets starting the first week of October.  This daily $QQQ chart below shows why two more days of weakness would be particularly important initially for a market bottom, triggering a possible TD Sequential “13 Countdown” signal right near June lows.  Targets for QQQ lie at 269 with a remote possibility of 265.  However, one should consider using weakness to buy this week as lows are approaching right as a bullish period of seasonality kicks in for mid-term election years.

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