October is a very important month for the broader indices including U.S. and Australian share markets. Historically alot of major lows and highs have marked important turning points in time. The 2002 low to 2007 high marked a 5 year bull market cycle and also coincided with the 1997 low which was another 5 year cycle point from Oct 1992.
Prior to 2007 high October was always a low point which was part of the larger bull market period which ran for many years.
The October 2007 high marked an end to the bull market cycle and now strongly suggests that a 5 year bear market is still in play. October 2012 will be a very important inflection point in the future.
In the current context we need to be wary of October 2010 being an inflection point similar to 2004 and 2005 lows and in this case it could mark an important peak in the market.
Some warning bells here if cycle theory can be relied on because it certainly has a strong record of success over the past two decades.
