S&P 500 IndexLong
Hurst Cycle Compression on SPX - going higher
Hurst cycle fans know that a deep enough drop will resync cycles and cause a period of cyclic alignment where you get a powerful move up. While we haven't had one on longer term cycles, the cyclic compression (yellow circles) have probably created a cyclic alignment similar to a drop with a "V" recovery.
The rightmost circle has the short (blue) and medium term (green) cycles on the 2 hour chart overlapping. This will happen at the beginning of a deep fall (at least using the way I have my cycle envelopes coded) but on our chart prices reversed sharply and strongly which creates a compression of the medium term cycle (in green) and follow through should follow the yellow line i drew, which is a higher low as shown with the red line.
If you have familiarity with harmonics / sine waves then you know in-phase waves are multiplicative in power (Google "Tacoma Narrows Bridge" for example) . Same effect here - we should see a powerful follow through to new highs given the higher cycle low that seems to be developing.
The rightmost circle has the short (blue) and medium term (green) cycles on the 2 hour chart overlapping. This will happen at the beginning of a deep fall (at least using the way I have my cycle envelopes coded) but on our chart prices reversed sharply and strongly which creates a compression of the medium term cycle (in green) and follow through should follow the yellow line i drew, which is a higher low as shown with the red line.
If you have familiarity with harmonics / sine waves then you know in-phase waves are multiplicative in power (Google "Tacoma Narrows Bridge" for example) . Same effect here - we should see a powerful follow through to new highs given the higher cycle low that seems to be developing.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.