Right Translated Cycles

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Right Translated Cycles are cycles that peak after the mid-way point of a cycle. Peaking after the midway point means the cycle spends most of its time rising and less time in descent. Therefore right translated cycles are associated with an uptrend, printing higher highs and higher lows.

The current intermediate cycle is forming as a right translated weekly cycle.

spx weekly

The average intermediate cycle runs 18 – 24 weeks in duration, although some can stretch out to 30 weeks. A peak on week 17 assures us of a right translated weekly cycle formation. Stocks are currently on week 20, placing them in the timing band for an intermediate cycle low. So once a daily cycle low forms, there are good odds that it will also signal an intermediate cycle low. Our cyclical expectation is to see the next intermediate cycle go on to print a higher weekly high once the current weekly cycle prints its intermediate cycle low.

Today stocks confirmed that they are declining into an intermediate cycle low.

spx daily

Monday was day 26 for the daily equity cycle. Stocks broke below the previous daily cycle low today. That means that stocks are now in a failed daily cycle, which confirms that stocks are moving into an intermediate cycle decline. Stocks are still 4 days shy from entering its timing band to print a daily cycle low. Therefore we could see stocks trend lower for the next 4 to 19 days before printing their cycle low. But once that daily cycle low prints, it will likely mark the intermediate cycle low, as well.

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