Sunday 1 November 2020

SP500 Cycle Review

Many of our cycle methods suggest 2021 will see another major top in stocks. But how far down?
image1 Forecasting how large the correction may be is any ones guess, any thing from 10% to 66% is on the table.

Assuming the US elections do not shock, the built up energy (CAUSE) will release higher asset prices (EFFECT) for 4 to 8 months. The massive generation of COVID US M2 money supply is sitting in bank accounts ready to be leveraged (buy buy buy) by the major Wall Street banks. Yes you can confirm that the global liquidity is high and ready to hunt for a home.


Chart 1: The Kitchin cycle continues to work (notice the margin of error band).


SPY2



Chart 2: Bartels confirms the above cycle. Notice major market tops and timely intervals.


SPY 1



Original Post: https://ift.tt/323VeZd

No comments:

Post a Comment