📉 S&P 500, mature cycle, 24th week, correction
👉 The option to continue the cycle in the form of a correction, promised in the previous post, has been implemented. The markets have not yet broken the March lows, but their behavior does not look like the beginning of a new cycle, which is always bullish. Perhaps March 21 will still become the upper extreme of the current cycle.
☝️ A feature of the current situation is the period of Mercury retrograde from April 1 to April 25, which on daily charts often contributes to more frequent multidirectional price movements, unexpected breakdowns of support and resistance lines, more frequent stops and misfires on targets.
☝️ Quite often, the beginning, middle and end of the Mercury retrograde period become cycle extremes. In our case, April 1 was marked by a double top for the S&P 500 and Dow Jones 30. NASDAQ shows bearish intermarket divergence.
👉 24 weeks for a stock market cycle is a lot. If a correction has not yet occurred, in cycle theory this means that a potential correction could be short and very intense.
👉 The next forecast extreme for the S&P 500 will be April 22. This will be the 25th week of the cycle and this may be the end of the cycle and the beginning of a new cycle. And the beginning of a new cycle is always bullish.
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