The S&P 500 monthly for September is showing another close in the lower Keltner channel near 1920. The latest bar is the start of the October monthly bar. September closed inside of the August range. A consolidation is taking place on a monthly basis that will determine whether the August sell off is a temporary pull back in the bull trend that’s lasted for the past 5 years or the start of a bear market. Consecutive closes under the lower Keltner line would signify the start of a bear market.
The monthly outlook is neutral to bearish.