Cycle screening measures blasted higher on Thursday and Friday. The aggregate measure crossed to the plus side on balance. Here’s what these numbers tell us about this rally.
The 13 week cycle has entered an up phase, joining the 4 week and 6-7 week cycles. The initial 4 week cycle upside projection has already been hit but that does not necessarily mean that the rally will immediately flame out. Here’s what to look for.
The market staged a dead cat bounce today. It broke a crash channel, but may have only succeeded in widening it.
Cycle screening measures tilted slightly stronger on Wednesday. But the numbers remain mostly at very weak levels, and the recovery in short term new signal measures is relieving an oversold condition.
The 1830 area is major support. Breaking it would complete a top pattern 2 years in the making. It is the biggest top in the modern history of the stock market. The implications are clear, and so are the price objectives.
Cycle screening measures strengthened slightly on Tuesday. But the numbers remain mostly at very weak levels, and the recovery in short term new signal measures is equally ominous given that prices have not been recovering.
Although the market only managed to tread water today, it was enough to pull most cycle projections back up to the levels the market has already plunged through as the bottoms failed. However, the 13 week cycle projection remains well below current levels and the preliminary 6 month cycle projection points even lower.
Cycle screening measures strengthened slightly on Friday as the market averages plunged. Don’t be fooled by that.
This appears to be a failed 4 week cycle upturn and an extended decline out of a failed 13 week cycle bottom. The earlier projections for the lows were hit. Crashes happen when bottoms fail to materialize where they should. Confidence collapses, which is then compounded by margin calls. As a result, there are new,…
Cycle screening measures only strengthened slightly yesterday and remain at very weak levels. While 8 of the 9 measures strengthened, most changes were small, and 8 of the 9 remained on the sell side. The aggregate indicator had only a small gain and remains at a very weak level. It will need to move up…