US Stock Market Composite - 13th April 2023 | Snippet

'C' class signal detected in US stock market composite (Russell 2000, Dow Jones Industrial Average, S&P 500). Attributes, targets and phasing analysis below

Signal Attributes

Defining characteristics of the component detected over the sample period.

Average Wavelength: 247 Days
Completed Iterations: 11

Time Frequency Analysis

Time frequency charts below will typically show the cycle of interest against price, the bandpass output alone and the bandwidth of the component in the time frequency heatmap, framed in white. If a second chart is displayed it will usually show highpassed price with the extracted signal overlaid for visual clarity.

Here the component around 247 days is A class until the 2020 ‘Covid’ lows, after which it becomes somewhat attenuated, degrading it to a ‘C’ class. This wave is notionally the 40 week ‘nominal’ component in Hurst’s original model for stock markets.

Signal Rating and Targets

Here we give our rating for the signal and our expectations for price, given the detected attributes of the component. In most cases the time target to hold a trade for is more important, given we focus on cycles in financial markets. Forthco…