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, January 2, 2012
How do we start the new year? The evidence suggest we start the new year by pulling back the first few trading days and set a bottom by around Jan 11.
Tuesday could well kick off the down side move. Here is the SPX and my interpretation of the cycles: