November 2015: monthly A.I. buy signal

We have a monthly A.I. buy signal: all 3 lines moved back up today. This is only the 4th since the 2009 low (see Figure 1; green vertical lines). The first monthly A.I. buy happened on April 2009. The 2nd on September 2009, the 3rd on November 2011. All 3 prior signal the start of new uptrends and considerable gains before a sell signal occurs: 24%, 32%, and 55% respectively. Hence, we should expect double digit gains now as well.
monthly A.I. buy signal

We can also observe that the monthly Bollinger Bands are rather tight: a large move is coming. In fact, these bands are as tight as back in mid-2012 (small purple vertical lines). The market then added over 60% once the Bands started expanding back then. Although we don’t expect such monster gains, it does tell us that combined with the A.I. buy signal double digit gains are indeed most likely. This would then bring us to our first target of SPX 2300s. In addition, this set up also fits with our preferred count in that the market is now in major 3 of Primary V