Cycles are a tool and should not be used to the exclusion of other tools. There is always the possibility (high probability long term) that the data will be misinterpreted or a relevant fact over looked. So use cycles to check your analysis, not as the only reason to make a decision. Interpretation is the opinion of the author and may be incorrect and should be viewed in that light.
Monday, November 14, 2011
Friday advanced, we expected at least a modest pull back. With the alignment of the cycles now today should be down (and could be down substantially).
I updated the cycle amplitudes (DPO) so as to incorporate last week's data. Here is the charts:
All the swing cycles except the 22TD cycle are down. The amplitude of these cycles less the 22TD cycle is about 40 points. A move of this magnitude would put SPX in line with the average for the 34TD cycle over the past 11 days (1225 or so). Here is the SPX swing cycles (my interpretation):