You will come across specific terms in these notes (FLD, VTL, and so on). Rather than explain them each time, you will find definitions here: guidance notes for Hurst cycles terminology
ASX200 – falling into an 18 month cycle trough.
Weekly chart. A major nest of lows is due in early December, the 18 month cycle trough circa 6,700. This means that the underlying trend is hard down, which in turn means shorter cycles’ rallies should be brief and peak early; declines should be more protracted and trough late.
Daily chart. The price low at the start of October was likely the 80 day cycle trough and this low has already been taken out (yesterday in fact). This attests to the underlying downtrend component at work. We are in a 20 day cycle trough zone this week, but are not expecting much from it. The main trough we are focused on near term is the 40 day cycle trough due in the first week of November. We expect a counter-trend rally into a 40 day cycle peak, we think below 7,000 and then the final push down into the big trough shown on the weekly.
This post was first published on Hurst Cycles Notes.
