Earlier, this 24-26 week dominant cycle gave a price target of SPX 1525 gap zone. The sell off so far earlier in April stopped short of that target and the market rallied back up.
In general, there is very strong liquidity and an huge downside break looks unlikely as the cyclical lows are slowly happening and running out of time to reach the price targets. The most downside potential is over the next 2 weeks for this cycle and a peak is still likely to occur this week.
There is more upside warranted to tag 1600+ before a sell off..
The current periodogram of the potentially dominant cycles;
The statistical comps and averages. The most likely downside break appears to come right after the nonfarm payroll (nfp) report into next week;
The distribution of the statistical cases by year and month. The comps (by looking at various assets) are similar to 1994-1995 and 2006 periods. The markets are still likely to remain in a very liquid market environment with further upside potential to SPX 1750 into summer...
The only confirmed cycle was 13 week cycle which appears to be peaked, earlier projected for the downside target of SPX 1525 due to the FLD breaks per Hurst Method (not shown in the chart);
Best of luck.
Edited by arbman, 30 April 2013 - 01:03 AM.
