Pinball Action

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Stocks have been forming a triangle consolidation sending price ricocheting along both the upper and lower stems.

spx

Tuesday was day 25 for the daily equity cycle. Stocks are 5 days shy of entering their timing band to seek out a daily cycle low. We will likely see continued volatility until stocks break below the lower stem in a clear and convincing manner which will signal their final decline into a daily cycle low.

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5 thoughts on “Pinball Action

    • Mr Dsi

      No, not K cycles, but observable price behavior.
      For example: Stocks form a daily cycle low, on average, every 30 – 45 days.
      LM

  1. I was under the impression that 1st DC are usually RT–so this current one seems to be LT. Or does the triangle formation negate this rule? If not, then what implications does this have for the new IC??? Thx in advance!

    • desh92,

      Triangle consolidations can obscure our daily cycle counts.
      What can happen in a triangle consolidation is that the daily cycle low is not the lowest point following the cycle peak, but occurs in the apex of the triangle.

      What I think is happening is that this is the first daily cycle of a new intermediate cycle.
      It is forming as a left translated cycle. If this daily cycle fails, it leads to an intermediate cycle decline.
      With the intermediate cycle now on week5, that leaves another 10 – 18 weeks before an intermediate cycle low is due.

      LM

      • Thanks for the reply. “What I think is happening is that this is the first daily cycle of a new intermediate cycle. It is forming as a left translated cycle” This is the part that I thought I read from other cyclists can’t happen. i.e. I was under the impression that the 1st DC of a new IC has to be RT. But I think you are implying it does not….Alternatively, could this be the 2nd LT DC as part of this IC (26wks) with this IC having started in Feb 2015??

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