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, December 19, 2011
The market continues to suggest that a cycle longer than those I normally track for swing trades is having a noticeable impact. I believe that cycle is the 20 week (Wall cycle) which is down for the next 3-4 weeks. Here is that cycle:
FWIW here is my interpretation of the SPX shorter swing cycles:
If I am right about the longer cycle the market bias should be negative for the next 3 or so weeks. GL traders.