Poised for Reversal

October 15, 2014

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

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.

http://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 responses to “Poised for Reversal”

macrojeff

October 15, 2014

Are you leaning to this being an IC (giving the high BOW) but it may fail being the SPX is declining into its yearly cycle low?

Reply
1. likesmoneystudies
  
  October 15, 2014
  
  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
  
  Reply

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