Monday, March 17, 2008

SPX Cycles 3/17/08

I’ve updated the 65 minute SPX chart because the short term cycles have been punching in like clockwork over the last few CIT’s. With the market internals strongly oversold, including the MCO and its 10% Index component which are at relatively negative extremes we can start looking for a turn in the markets. Hint: this may be it, right here.

So I took a look at the current cycles and the 56 bar, (9.38 TD’s) indicates the market should turn tomorrow sometime in the first hour. Considering, the oversold condition, it is almost safe to assume this will be a low.

Moreover, I have also marked two instances of the 59 bar cycle. Actually, these darker instances are only mid point markers which served to pick the high between the actual cycle measures (the wider and lighter lines) Normally I wouldn’t bother explaining these, but the last two occurrences have been lows rather than highs. When cycle timing points reverse, or invert as we say, it is often an indication of a change in the prevailing trend.

Click to enlarge

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