S&P 500: Hurst Cycles - 12th January 2023
The 20 week component has been amongst the most dominant in the last 12 months. As stock markets approach the next peak of this wave, we will see dominance continue?
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Analysis Summary
Stock markets have established their respective 18 month nominal lows, likely in early October and are currently approaching a peak of the 20 week nominal component ,with varying degrees of enthusiasm. The S&P 500 is muted, as are other US markets while European markets surge higher in recent weeks. The disparity in amplitude at the 20 week component is not matched by a similar disparity in frequency, commonality is very apparent.
The peak of this 20 week component is the first chance to see if the longer term phasing, which anticipates a 4.5 year nominal low in late 2023 /early 2024 is correct and is still exerting influence on price action. The area to watch will be around the 54 month FLD, which has formed crisp suppo…