Cycles- The cycle picture this week is a mixed bag, with the edge to the bulls. The bullish outlook hinges on there xxxxxxxxxxxxxxx this week. That would validate the 6-7 week cycle up phase projection of xxxx, and raise the possibility, if not the likelihood, that the 6 month and 10-12 month cycles have merged into a shorter hybrid that xxxxxxx xxxxxxxxx xxxxxxx of xxxxx xxxxx. That would then point to that hybrid cycle staying xxxx xxxxxx xxxxxxx until August-September.
On the other hand if the market xxxxx xxxxxxxx xx xxxx this week, that would keep the 6 month cycle projection of xxxx in play. Non subscribers click here to access.
Third Rail Channels – The SPX is centered in the lower half of its short term uptrend channel. The bottom of the channel rises from xxxx to xxxx this week. There are multiple crisscrossing resistance lines in the xxxx-xx area this week. A daily close above 3950 would result in a conventional measured move target of around xxxx. So I would not want to be short on a move above xxxx, or maybe xxxx at the outside. I might nibble on the short side on a rollover that ends the week below that green trend channel. Non subscribers click here to access.
Long Term Weekly Chart –Long term downside cycle projections have already been reached but it’s too early to conclude that these downside projections are final. I will give more weight to classical technical indicator positions and trends such as a conventional measured move target of xxxx-xxxx. Non subscribers click here to access.
Meanwhile, the market is in a counter trend rally. If it clears xxxx this week, it’s likely to head for major resistance around xxxx in July. Conversely, if it doesn’t clear the top of the trend channel near xxxx, the downtrend would remain intact. That would lead to a test of the low, with a good chance of a breakdown that would target xxxx. Non subscribers click here to access.
Monthly Chart – Breaking xxxx in July could send the SPX hurtling toward the next major support line at xxxx. Conversely, if they stay above xxxx, there’s room to run to around xxxx in July. Non subscribers click here to access.
Long term momentum remains on a sell signal and is now sitting just above the bottom of a 3 year uptrend channel. Closing any month below that line would be another long term bearish signal.
Cycle Screening Measures – The cycle screening aggregate was stable in a firmly positive range. The short term and intermediate patterns are xxxxxx. Non subscribers click here to access.
6 month cycle measures are now both on the buy side which is a sign that xxxxxxx xxxx xxxxxx xxxxxxxx xxxx. The current status measure is only modestly positive, so a down week this week would send it back to the sell side. But if the market moves higher that would make this indicator more xxxx xxx xxxxxx.
These reports are not investment advice. They are for informational purposes, intended for an audience of investment and trading professionals, and other experienced investors and traders. Chart pick performance changes week to week and past performance may not indicate future results, as you know. Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance.