SPX made the sudden drop to the red arrow in October. Currently SPX is near the green arrow Cycle low.
The Cycle suggests a bounce soon to the orange arrow.
60min Chart
Cycle: Current location is marked with the green arrow.
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Saturday, December 13, 2014
$SPX - Cycle Analysis Shows Volatile Swings Ahead
Volatility is likely to continue for months in SPX. The Cycle shows a trading range forming (red lines) for months ahead.
SPX made the sudden drop to the red arrow in October. Currently SPX is near the green arrow Cycle low.
The Cycle suggests a bounce soon to the orange arrow.
60min Chart
Cycle: Current location is marked with the green arrow.
SPX made the sudden drop to the red arrow in October. Currently SPX is near the green arrow Cycle low.
The Cycle suggests a bounce soon to the orange arrow.
60min Chart
Cycle: Current location is marked with the green arrow.
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Excellent trader's market!
ReplyDeleteHold on, hold on! Last July 22, 2013 you posted this exact chart and had a yellow arrow right around where you've NOW put a BLUE ARROW!!
ReplyDelete18 months and 400 spx points are you now trying to move back the timeline?!
Be interested in seeing your new UVXY monster chart which had UVXY at a blue arrow low last year at 8x current levels.
Yes that is correct. The SPX Cycle called the start of the "sharp rally phase" in Nov 2012. The sharp rally phase was correctly called but it lasted longer than I expected. That doesn't take away anything from the Cycle. It works extremely well for calling the large turning points and next moves in the market.
DeleteThe SPX Cycle is a large scale Cycle. The Cycle was correct in accounting for the sharp rally. I've been waiting for the "sudden drop" to occur. We saw that occur this October.
We're coming up to Point A in coming months!!
Also for the record, the RED LINE on the chart was at 1500 spx which is about 300 pts lower from where you've now placed the "new" red arrow!
ReplyDeleteYes the sharp rally phase in the Cycle was correct, and the name was fitting. It was sharp and long lasting. More than I would have thought.
Deletejoe...your VIX forecasts have been on the money...that gap is going to be filled sooner rather than later...let's see what happens after the FOMC meeting on Wednesday...thanks for posting
ReplyDeleteTook profit in UVXY at $30.85.
ReplyDeleteUVXY should drop to around $21 next. Looking for XIV entry...
ReplyDeleteTx! Price was turned away again into time today after chasing stops! Best and Happy Holidays to all. Life is fragile!
ReplyDeleteThank you!
ReplyDeleteYes, the Cycle shows a roughly 50% retracement from Dec high to the Oct low. We're very close to that right now. Therefore, the low for SPX should occur soon.
SPX should do ok in the coming months. After reaching Point A then it deteriorates rapidly.
ReplyDeleteWell I think US equities are expensive, but they do look ok for coming months. The US was hit relatively the hardest in 2008 which is why they are doing relatively better than many other countries now. This relationship should hold true for a few more years but not forever...
ReplyDeleteSo the US is the best of the worst for now, which isn't exactly positive lol!
http://tinyurl.com/labxevf
ReplyDeletemy identified target price for VIX ($22.49) has been hit...expect my target price for UVXY ($41.75) will be hit as well...
SC...you have previously 'misinterpreted' your SPX cycle...you may want to remain open to the possibility that you are doing so once again...point A may have occurred on December 5, 2014...
I'm satisfied that everything is setting up according to the Cycle.
ReplyDeleteMy plan remains to just trade the big gyrations until the Cycles have matured.
ReplyDeleteBought XIV at $29.65.
ReplyDeleteSC, are you expecting a lower high or higher high in s$p, when are u planning to sell XiV
ReplyDeleteI'm not sure if the orange arrow will be higher or lower high for SPX. It'll be close I think.
DeleteFor XIV target is $34 to $36 this month.
So A, you are expecting in March, from the chart looks higher high, around 2100 2200 what people have been saying
ReplyDeleteYes I am expecting a higher high at Point A.
ReplyDeleteSPX up a few more days into probably Monday, dip a little, then up and peak around Christmas at the Orange arrow.
ReplyDeleteQuite a solid bounce for VIX off 16 today. I think we'll see 14 to 15 tested though.
ReplyDeleteBONDS
ReplyDeletehttp://traderjoed.blogspot.com/
VIX
Deletehttp://traderjoed.blogspot.com/
I expect we'll test the high for SPX around Christmas at the Cycle Orange arrow. Not likely much higher.
ReplyDeleteThe first week of January looks negative for SPX and the Cycle shows a drop from Orange to Blue into that time frame. I think the Oil/Russia situation calm for a week, and then unravel again with SPX plunging again into the blue arrow.
It's a choppy market which is my favorite!
This guy is also goodwith cycles www.tripstrading.com
ReplyDeleteI was wrong about oil in my post one month ago.
ReplyDeleteMaybe in the future it will reach 52.70 gap from 2009.
This blog is usually correct on a few calls...and then it proves to be incorrect for a few months after.
I think it will be wrong on the upside and we will go into the 2100s (2130?) through January.
The ECB meets Jan 22? Also China will pump stimulus if it needs to.
We have one month of going up next.
Be CarefulNovember 17, 2014 at 6:24 AM
3 outcomes until Dec 31.
a) correction to 1994, this is probably going to happen.
b) correction to 1925, possible but not likely at all.
c) correction to 1904, this will not happen. 7% pullback? would require a global catastrophe. will not happen. absolutely not.
We will not close below 1925 the rest of the year, as stated earlier. What the VIX does is irrelevant, divergence...who cares? Breadth divergences across market will be of no consequence. Market sideways to mild down at worst. Best case 2070-2100 very soon.
Once again, I expect this blog to post a bullish forecast until at least late January.
Gold is not going below 1100 anytime soon. Waffle back and forth here or a tiny bit lower.
Oil may touch 68-70 at worst.
Look, the fact is ECB and BOJ will be firing money at any deflation threat for months to come (not to mention the interest rate control). Recessions will make them keep rates down...and apply all kinds of cockamamie stimulus plans. This idea that market breadth/"cycles" is going to offset trillions of dollars of global liquidity and zero interest rates is incorrect. Stop being logical.
if I am reading right, commercials went short big way
ReplyDeletehttp://snalaska.com/cot/current/charts/SP.png
http://snalaska.com/cot/current/charts/ES.png
Sold XIV at $34.45.
ReplyDeleteSPX Cycle Update posted!
ReplyDelete