SPX is struggling at the broadening formation line (turquoise). The topping process will likely be characterized by weeks of sideways and choppy trading with a scary dip in the middle.
The Deja Vu Cycle specifically predicted the surge up in January. The next major move in the Deja Vu Cycle in the coming months is a plunge to
test the red trendline.
The Deja Vu Cycle clearly shows a bear market ahead with initial measured target at approximately 1025 SPX. As well, the Cycle suggests lower lows after that target is reached.
A detailed view of the topping process in the Deja Vu Cycle is shown below. SPX
is likely near point C in the Deja Vu Cycle.
The Cycle suggests that the topping process will be characterized by weeks of sideways and choppy trading with a scary dip
in the middle as shown on the chart below.
Larger view of the Deja Vu Cycle:
Current Deja Vu Cycle for SPY:
Exact Geometry suggested a low for UVXY which has held. UVXY has been climbing up along the yellow fork. Both UVXY and VIX have started to trend higher in recent weeks.