From time to time the market action requires a new evaluation of whether the cycles being used accurately represents the market data. Argue with the market at your own peril. I have taken a fresh look and decided that I needed to make adjustments in my interpretation of the cycles. The best fit of the data appears to be a 40TD and 20TD combination of cycles. Gann theory suggest eighths of 90 (45TDs, 22.5TDs), but the theoretical should not be viewed rigidly if it does not explain market action.
So here goes. The 40TD cycle is up (next 15 days until Dec 23) , the 20TD cycle is up next 4 days (until Dec 9), the 5TD cycle is up Monday. The 10TD cycle is down as is the 2.5TD cycle. So the bias should be up Monday but less so that the first part of last week. By Tuesday the bias may slip to being slightly down?
Here is the SPX swing cycles (my interpretation):
GL traders. I hope my adjustments better explains the future market action.
I see the same thing.
ReplyDeleteNice to see you & shadow are in agreement.
ReplyDeletePhil Davis wrote that he would like to see a 2% pullback. Otherwise, he seems bullish.
Presently, the DOW is leading the Nasdaq today and Keystone feels that for truly bullish action, it should be the Nasdaq that leads. So, maybe a pullback will occur.
I would like to see a pullback and then will likely buy the dip. Keystone feels that the EU Summit meeting this Friday is expected to deliver "good news". Seems to me that the PTB will allow a Christmas rally.