The first week of August should see the nested bottom of the Wall (20 weeks, 4.5 months) cycle, 10 week, 5 week, and 2.5 week cycles. The next 20 week cycle bottom of nested bottoms will be late December. But unlike the bottom forming now this next bottom will have 2 longer cycles also bottoming (Kitchin cycle - 3.5 years and 1/3 Kitchin cycle - 13.5 months) and expect a more substantial move down.
It is likely this will limit the upside of the 4 cycles (Wall, 10 week. 5 week. 2.5 week ) we look at for swing trading will have less upside effect than one normally sees.
The amplitude of up moves should give a hint as to how much downside we see by year end.
Good luck
I think we're about to see the upside now as it usually comes in the .618 or .666 area of a cycle.
ReplyDeleteUnderstand, the most downside usually occurs in the final 20-30% of the cycle's timeline.
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