Poised for Reversal


The bullish reversal on day 48 has a good chance of marking the daily cycle low.

spx dailyhttp://postimg.org/image/fs0i3z0ll/

A break above 1874 forms a daily swing low. Then a break of the declining trend line will confirm a new daily cycle. The hugh BOW numbers suggest that this could possibly be a shortened intermediate low forming.

Bonds are in their timing band to print a daily cycle low.

tlt dailyhttp://postimg.org/image/4gxufltqh/

The bearish reversal that printed today likely will mark the cycle peak. A break below 121.84 forms a daily swing high and then a break of the daily cycle trend line confirms a daily cycle decline. A peak on day 20 locks in a right translated nature to this daily cycle and we can expect the next daily cycle to print a higher daily cycle high.


2 thoughts on “Poised for Reversal

    • We are on week 10 of failed weekly cycle. Our normal cyclical expectation is to see 8 to 12 more weeks until an intermediate cycle low is due.

      I have seen some minor BOW numbers prior to a daily cycle low. I have not seen these kind of BOW numbers that did not signal an intermediate cycle low.

      So we had 2 stretched weekly cycles at 32 weeks a piece followed by another slightly stretch cycle at 26 weeks. We have seen shortened cycles follow stretch cycles and ‘balance’ out the cycle count. I am trying to be open to the possibility of seeing a shortened weekly cycle here

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