I was just looking at the S&P 500 and I noticed a very pronounced cycle in this market that I want to share with you.
In my new video I explain exactly what I've seen and what I expect will happen to this market if this cycle continues on track.
You can view this new video with my compliments. There are no registration requirements. Please enjoy and give your feedback on our blog. Thank you.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
It's a Monday Jun 15th.. looks like we've reached the top last week... all downhill from now.
I have a feeling that the shock of GM declaring bankruptcy in all likelihood could knock the S&P 500 down through the 879 support as a catalyst for the retest if it doesn't happen by Friday. This GM bankruptcy will cost us quite a few more jobs and traders should react to that and since GM is due to pay their bondholders this should happen sometime over the weekend.
I like to consider major world events as catalysts as well as using the technical approach. For another example, does anyone doubt what would happen to the price of oil if we wake up one morning and learn that Israel is pounding Iran's nuclear sites and Iran blocks the Straight of Hormuz?? It's not if, but when... Oil will soar. I wouldn't want to be short.
I don't hope for it, but it is written on the wall.
Interesting material.
The thing I find most interesting is the peaks of the short term bounces have a sense of uniformity also.
There is a train of thought out there that the market turns 6 months prior to the end of a recession (I am not condoning it). Each time the economy does not show indicators to back that end, we start the new bottoming process. Hitting a new low 4-5 months later.
The key point in my mind, is that resarts the end of recession clock, and another trough to (lower) peak ensues.
We are now 12 weeks away from the March low. If we are to start seeing weakness to threaten (retest, hopefully) that low, it should begin shortly.
s & p report bay and seel for ecast daily
That cycle is one of the most dominant waves in the market over the last 100 years. The average varies slightly over time from 17 to 21 weeks. Another visually striking example of that wave is the decline from 1929 to 1932. It is always present but one needs to be skilled in spectral analysis to extract it. Standard technical tools are insufficient.
Keep up the great work,
Bill
Adam,
Excellent analysis, I like your blog.
Al
Thanks
First time visit your blog.I have seen 3 times the video.I bookmark the page at the favotites.I will visit every day your blog.
Thanks for the infos.
POLE
Really interesting analyis. Have you tried to utilize the Linear Regression channels (+/- 0.7 StdDev) on S&P500 (from the 2007 October high up to now) ?? By doing it, it seems that the "astonoshing rally" from March 6th low, is nothing more than a move from the -0.7 StdDev channel to near to +0.7 StdDev one. BTW, it did not touched the StdDev line before starting dropping again.
Thanks for the educative videos
Kind Regards
Marco
Thank You Adam!
This is very good assumption I saw lately, I like your blog.
Adam,
I again say, Thanks for your willingness to share. You are blessed to have had such an excellent upbringing.
The timing of this possible set-up, if correct, is exactly why I check in with MarketClub several times EVERY day. (7/365) Your insight is priceless.
My trading is heavily influenced by the technicals of the market. The movement this past week was a strong testament to the technical aspects of the market in my opinion. Your observation here is very interesting and well founded. I am very excited to see just how this plays out. Thank you MarketClub.
excelent
Good comment and good analysis. Keep it going... First time read your blog. Very interesting.
Ray,
Welcome.
Thanks for your comment.
Adam
I think it would be interesting for Adam's analysis to use trading days for the intervals instead of calendar days. We have had quite a few holidays lately and taking that in consideration may give a more accurate analysis.
The S&P Chart sure looks to have formed a double top in the last 6 months> I think Adam is right this time. This market will tank after breaking through 879 by the end of the week and tank until the end of next month!
Heheheh...
I will short STI, ZION, and HIG and possibly use SRS and SKF for the mega move downward.
I am ready!
:O):O):O)
Maark,
Thanks you for your comment. That is a good observation.
Holidays and exchange days do play an important role in all cyclic analysis.
Let's see j=how this one plays out.
All the best,
Adam
Thanks Adam!
I have learned so much from your Trading Videos and MarketClub. I value your opinions and wisdom in a big way. You have given me confidence and that has resulted in nice returns for me lately!
I am looking forward to next week with my eye's on the S&P's key levels.
Keep up the good work!
Good analysis!
Not too difficult Wave calculating. Same princip may be used in day and swingtrading.
I am looking forward to it, and have betted upon with tight stops ...
BIll N.
Interesting keen observation. Your analysis makes sense.
being a chart trader ..this is interesting.
seeing what the ..probalility is for the direction