Saturday, February 19, 2011

The Master Cycle 2011-2012 Crash Forecast

Review of this past week: "The Master Cycle (MC) suggests 2/14 High, 2/17 Low, 2/18 High"
Actual: The MC suggested a 2/14 and 2/18High, which is what we got.

The rally has been relentless in the last couple of weeks and months. In the last 57 TD (11/29L), we are up a whopping 170.43 SP's, in the last 121 TD (8/27L) we are up 304.37 SP's. That is a 2.99 SP Gain/Day (3X1) in the last 57 TD and 2.52 SP Gain /Day in the last 121 TD. What is interesting here is, I have seen on various Forums in the last couple of weeks and months, a growing pessimism as the markets continues to march higher with many good analysts constantly looking for a Top, which is a continuing Bullish Sign in general.

If the MC remains active, in general, we should continue to grind higher into June 2011 High of the Year, despite shorter term fluctuations.

 The 2011-2012 Master Cycle Forecast
The Master Cycle (MC) (click on chart to enlarge) suggest generally we should see a solid 1st Half year into June 2011, which should be the HIGH of 2011 and then weaker in the 2nd Half of the year and lower into October 2012 Major Lows. We should retrace at least 50% to 1000 SPX. The Price Magnitude is not a guarantee in the chart, but should be a general guideline. Other cycles that I watch confirms the MC outlook for a June High and down the rest of the year and into 2012 Lows.

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