S&P 500 - 9th January 2024 | @ 77 Days | - 2.99%
Last trade: - 2.99% | 'B' class signal detected in the S&P 500. Running at an average wavelength of 77 days over 15 iterations since Feb 2021. Currently troughing.
ΣL Cycle Summary
Giving further credence to the low in late October being of larger magnitude (at least 40 week nominal, see below chart), the retrace of the 80 day nominal wave here has been largely asinine and very short lived, should it be complete at the time of writing. There is a little more room for a further drop in the next few days but we are certainly well within the zone for a trough of this component. What is, of course, notable about this particular up-leg is the bending of the wave to the upside, which results in amplitude modulation being observed within a time frequency analysis. This occurs in all markets and timeframes when a larger component is commanding price action, such is the nature of financial market structure in general. A price analogy can be seen in the bullish period through 2021 with the larger component(s) dominating.
The envelope which encases the bandpass section of the chart below shows how the amplitude of this shorter wave increases as the underlying trend (sum of larger cycles) flattens out. At that stage the wave is maximally profitable within the larger price structure as both up and down legs will have similar amplitudes. The next peak of the shorter component (~ 77 days) is due late February, which will likely also be a peak of the larger wave mentioned above.
Summary of the most recent trade enacted with this signal and according to the time prediction detailed in the previous post for this instrument, linked below.
Type: Sell - S&P 500 8th December 2023
Entry: 8th December 2023 @ 4604.37
Exit: 9th January 2024 @ 4741.93
Gain: - 2.99%
Current Signal Status
Defining characteristics of the component detected over the sample period.