If this pattern plays out, it will be a game changer. The cycle work (larger cycle) suggests that the 18 month cycle lows in Oct 2014, Feb 2016 will play out to a major low around June 2017. That would imply that this current move off of the ICL on Nov 8, 2016 runs right translated to previous cycle highs in early 2014 and mid 2015. The megaphone pattern, combined with the vertical ascent of Russell since the ICL, portends for a very severe reversal. This was the upper channel line target mentioned awhile back (it already moved thru a similar channel line that had contained this structure from the Feb 2016 lows.
Today marked a day where the Midcap index and Russell diverged from the S&P 500 and Nasdaq.
Today marked a day where the Midcap index and Russell diverged from the S&P 500 and Nasdaq.
Comment:
Another market (like the SPX) that hit channel line resistance in a time-cycle window for a high. Cycles point to a downtrend into March, but it could still hang around this range for a little while longer. Cycle low (bull market phase) happen in hours (sometimes a re-test), cycle high's can take weeks (and will appear corrective into the ICL's) e.g. Sept-Nov sell-off which hung around higher levels until final week into ICL.
