Markets continue to defy gravity and any and all predictions for a correction, a dip, a pullback etc. I misread the significance of the Feb. low (clearly an 18 month low) and now we watch for the formation of the coming 40 week low. I’ve been busy with other things so my market work has taken a back seat. I’ve downloaded the new Sentient version and thought I would do a quick update.
The chart below shows the Feb. low as an 18 month low which I have pinned. Sentient is undecided on placing the first 20 week low after that. In my opinion it arrived during May and looking at the 18 month FLD, it gives me some confidence that this was the case. The coming 40 week low should finish by mid-September and the decline into this low can start any time, with an actual low arriving from mid-August to mid-September. The 18 month cycle has been very regular at 14 months +/- 1 month, while the last two 40 week cycles have been 32 weeks exactly. Let’s see what we get late summer.
While I had been looking for an intermediate top this year, it doesn’t look like it will come until very late in the year. The 9 year FLD has an outstanding target of roughly 2150 on the $SPX. Given how bullish these markets have been and how right translated this 9 year cycle is presenting itself, there can be little doubt that this target will be achieved. So a new high will be reached after the coming 40 week low and then we plot our way to the next target. See you in a few weeks time.