Bulkowski's October 2022 Forecast Update

This is a graph of the chart pattern indicator (CPI) against the S&P 500 index. Briefly, the CPI counts the number of bullish patterns to bearish ones in the belief that at significant market turns, the bearish patterns will outnumber the bullish ones, or vice versa. The thin blue line at the bottom of the chart is the CPI.

The CPI turned bullish yesterday (Monday) as the vertical green bar shows on the far right of the chart. The vertical bars obscure the CPI line. That's unfortunate because I wanted to get a reading to see how high the line has moved. A check of this website says it's at 100%, the max.

What this means is that the CPI will either go sideways or down. I think it'll keep high for another two days and then drop when the index reaches 180 on the right scale.

This is a chart of the Dow industrials on the daily scale. The 2022 forecast is in red, taken back in January.

At A, the forecast reached its low even though the index bottomed out at B, just 3 trading days ago.

The next minor low is the vertical blue line. If the index performs like the forecast, we should have an upward trending market to year's end (C, green line).

This is the Nasdaq on the daily chart. It's similar to the prior chart. Point A is the next pivot. B, with the green line, shows a potential double bottom chart pattern. However, that will only come true if the index closes above peak C, which is the highest peak between the two bottoms at B. Notice that point D is higher than we are today. The forecast says to expect a rising market to year's end.

Here's the S&P 500 index on the daily scale. Again, A is the next minor low. B shows a rising market forecast to year's end. It's possible that turn A (in the forecast) happened 3 trading days ago and it's off to the races now.

If that's true then we can see the market slide lower for about a month. It suggests it's a good time to do some tax loss selling. Buy back in just over a month from now. I wish I could say that will happen, though. I have my doubts.

This is the forecast out to 2026, using the weekly scale. I show trend A highlighted by the blue line. Yum!

Of course, the forecast has to be correct and so far, it's been off some. The forecast shows the bottom in July when it happened in late September (so far). If the forecast is correct, look for the index to rise about 50% to 2026.