Nov 11, 2013

Correction time???

DJ Transport weekly - I keep a chart of another indexes because sometimes the cycles are more clear.... I am posting it because it is interesting to see the perfect cycle resemblance. Two things:
- first the cycles are more clear and you can see visually why I expect correction at this point. The first 18 month cycles of the two 4 year cycles are exactly the same... now the last part is missing:)
- second in the weekly review I wrote that we should see a top this week... ok last chance is next week. This is not by coincidence or because I am trying to nail tops(which is very stupid). The reason is because SP500 is at week 6 of the last 20 week cycle which is almost the middle of the cycle and if the price will move lower it must be NOW. You can see it on the chart too, it is time:)

We have all pieces of the puzzle in place - indicators, market breadth, cycles, TomDemark weekly 9-13-9 finished, sentiment, historical similarities, the topping pattern which I am posting... but if we do not see the price starting to move lower all this does not matter.
The 18 month cycle will finish just moving sideways with small pullback and the low will be around the end of January when we have the "debt ceiling drama again" and another strong move will begin. See the low of the 4 year cycle - expect something similar. I can be wrong, I can not see in the feature:) and this is the plan if we do not see a correction.

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