Today I would like to provide an update on the evolution of the SPX cycle composite (S&P 500). As we are fast approaching my forecast of an April high, its interesting to see how the underlying individual cycles have changed and altered the previous SPX cycle forecast. As I have mentioned in prior posts, cycles in markets are always and everywhere dynamic. As the wave energy affects the up and down swings of the market, new data are added. This shifts/mutates the composite analysis to highlight the latest top 5 cycles (also being the most active within the market). The key here is to remember that the sum of all the relevant cycles is what creates the potential turning points.
Below you can see the updated scanner report that shows the 101-day cycle being the most dominate at the present time. This was the same dominate cycle back in February. The only difference is that the amplitude has subsided a mere 20 points. To me this means that the current SPX cycle forecast is still very stable and should be pretty accurate going forward for the next few major swings.
The newest composite has only shifted the absolute peak of the SPX cycle by 1 day to April 11, 2014. We don’t often see the market top on this exact day but within 3-5 days is common occurrence. It is very interesting that this potential top in the market lines up very closely to the old adage “sell in may and go way.” It is also of interest that this high forecast is lining up with some very interesting astrological events in Mid / Late April.
April 14 – Pluto Retrograde
April 15 – Lunar Eclipse
April 20 – Jupiter Square Uranus
April 21 Uranus Square Pluto
April 22- Mars Square Jupiter
April 23 – Mars Opposite Uranus (typically very bearish for stocks)
April 29 – SOLAR ECLIPSE!
These are all considered Hard aspects and are typically linked to times of high volatility and big negative swings in the market (not to mention also earthquakes and political turmoil). As well, the alignments of Pluto, Uranus, Jupiter and Mars form what is known as a GRAND CROSS (which is extremely tight in exactitude). I think this energy will accelerate the market action to the downside till early July where we will revisit our SPX cycle composite forecast and see if a buying opportunity presents itself.
All cycle data and analysis is from the Whentotrade.com cycles & genetic algorithm software. Let me know if you would like to demo the newest release. You can email me at: alex@aetheranalytics.com.
Twitter: @InterestRateArb
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
