Eyeing Cycles For Possible Market Reversals
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Last week we had too many cycles to look at and could not get any clarity on when the SPX might reverse its climb. We did, however, show a few clear cycles this past week that came in between 7/29-31. These dates plus or minus a day gives us a window where a possible reversal of the market becomes more likely.
Note that actual low was made yesterday 7/31 directly within the group of cycles. Cycles just gives us a heads up to watch for possible reversals of whatever the market is doing into them. Now that we're seeing a pullback, we'll be watching the next group of cycles between 8/6-7 and ES and 8/5-7 on NQ for a possible low to develop.
I don't plan on getting into the market on the long side, however, unless we are continuing down into the next grouping of cycles and we then see a clear reversal signal. Typically, I like to see the 8/34 ema crossover to the upside on a 30-min chart. If you look at the current 30-minute chart you will see where the sell signals were given on the downside crossover against the cycles for a high!! I'm going to stalk this one early next week.
Note that actual low was made yesterday 7/31 directly within the group of cycles. Cycles just gives us a heads up to watch for possible reversals of whatever the market is doing into them. Now that we're seeing a pullback, we'll be watching the next group of cycles between 8/6-7 and ES and 8/5-7 on NQ for a possible low to develop.
I don't plan on getting into the market on the long side, however, unless we are continuing down into the next grouping of cycles and we then see a clear reversal signal. Typically, I like to see the 8/34 ema crossover to the upside on a 30-min chart. If you look at the current 30-minute chart you will see where the sell signals were given on the downside crossover against the cycles for a high!! I'm going to stalk this one early next week.
