As I have indicated the past couple of weeks I believe we should be at a point where we get a trend reversal. It may only be for 4-8 weeks, but to go much higher the market needs a correction to reset expectations. Everyone is on edge waiting for that correction and unwilling to commit more on the long side until that happens. So in that respect a correction is viewed as a positive by the bullish.
The cycles keep topping so sooner or later we get that correction:
- The 10 year cycle is down (Juglar cycle - 3x the Kitchin cycle)
- the Kitchin cycle (41 months) is down
- the 2 year (24 month cycle) is up
- The one year cycle is down
- The 7 month cycle (just topped)
- the 20 week (Wall) cycle is down
- the 22 day cycle is down
- the 11 day cycle is down 2 more days
Here are the charts:
GL traders. Do your own analysis.