Friday, June 12, 2020

Revisiting the 75 week Flash Crash (FC) Cycle



On 5/3 on my public blog, I mentioned that “the Flash Crash Cycle is due in late May 2020”





The 75 week/360TD/525 CD FC Cycle may have inverted to a 6/8/20 major High, which was also at Long term red Channel resistance.

06/08/20H is:

04/14/00L = 14 X 525.71 CD 
09/21/02L = 13 X 525.77 CD
03/12/03L = 12 X 524.83 CD
08/13/04L = 11 X 525.27 CD
11/21/08L = 08 X 527.13 CD
05/06/10 FC= 07 X 526.57 CD
10/04/11L = 06 X 528.33 CD
02/11/16L = 03 X 526.33 CD
12/26/18L = 01 X 530.00 CD

As mentioned before, at times the FC Cycle skips a beat, out of the last 14, 9 (64%) were direct hits and 5 (36%) were misses. It is possible it was a miss as 36% of them were misses, but if the 6/8/20H remains the High in the next few weeks, it becomes more likely that this 75 wk cycle was the 6/8/20H. The 75 week cycle is +/-2 weeks, 3/12/03L, 10/4/11L and 2/11/16L were 1 1/2- 2 weeks off.

Review of the last weeks





From the 5/19 Email: The 45 TD Hurst cycle Low was the shallow 5/14L at 2766 SPX, which was confirmed today at 37 TD Long and now projects an average rally into 6/11-25H

From the 6/2 Email: “Shorter term, we see a 6/4 swing High, before we see a sharper decline into 6/11 WBOE Low”

Actual: From the 5/14 swing Low, the rally continued into the 6/8 swing High, 2 TD later and saw a sharper decline into 6/11 Low.


Conclusion: Shorter term, we are expecting a 6/11 Low +/-1 and another short term rally phase. Once and if the 6/8 swing High gets confirmed as the FC High, we should see a relative sharp 300-500 SP decline in the coming weeks. Are you ready?




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