World Cycles Institute

Market Forecast Overview

Posts reflect the most recent forecast using a combination of cycles forecasting and the Elliott Wave Principle. Posted each Sunday (and sometimes more often).

All trades, patterns, charts, systems, etc., discussed in these articles are for illustrative and educational purposes only and not to be construed as specific advisory recommendations.

Futures, forex, equities, and option trading involves substantial risk, and may not be suitable for everyone. You can lose everything! Trading should only be done with true risk capital. Past performance either actual or hypothetical is not necessarily indicative of future performance.

Ending Diagonals Cap the Market

Update:  Monday, July 16 Above is a chart that was part of a zerohedge article on the Amazon insurrection in Europe. As I’ve written before, you’ll find EW trends throughout society and here’s another example. If I was Jeff and understood how trends unfold, I’d be worried. After 5 waves up, the trend will reverse… Read More

Pushed Around by the US Dollar

The Center of the Financial Universe: The US Dollar The movement of the past few days prompted me to do a deep dive on the US Dollar—a renewed interest in the “big picture”—where the dollar is going longer term. In this case the technicals tell a much different picture than the prognostications of many of… Read More

The Technical (EW) Advantage

Technical Analysis vs. Fundamentals What would the work be like without pundits predicting the market? Answer: A lot saner for anyone trying to follow the market. Only technical analysis will give you an accurate picture of where the market is going. Most fundamental analysis is just hearsay. That’s especially true now with virtually all asset… Read More

USD: The Penultimate Turn

The US Dollar: Key to the Market The US Dollar is the reserve currency and just about everything (inside and outside the stock market) is priced based upon its current value. Almost all asset classes have a relationship with the dollar. Gold and oil are priced in US dollars. The currency of virtually every country… Read More

Elliott Wave Ending Diagonals

Ending Diagonals Everywhere! For over four weeks, we’ve watched the rally in the SP500 trace out a corrective wave up from the low of 2553.60. We began with what was a textbook contracting triangle. Then two weeks ago, the Nasdaq indices suddenly rallied into an ending diagonal. On Monday of this week, the SP500 (and… Read More

From the Crowsnest

Keeping a “Weather Eye” I’ve mentioned before that my favourite sport is sailing. I’d much prefer to be out on the ocean more than just about anywhere else on Earth. There are lessons I’ve learned about the power of nature and the preparation necessary for venturing out in the world that could be very helpful… Read More

Underlying Market Weakness

The Uphill Battle Continues in SPX For three weeks, we’ve watched the D wave of the contracting triangle in ES and SPX try to top. We’re very close to turn and Monday might just be the day. Good riddance to this wave! With almost every up and down move in the past three weeks in… Read More

Complexity at the Top

One of the first things President Trump did when in office was to require that for every new regulation brought into law, two more must be rescinded. The message here is that we’re grossly over-regulated. Think about it. When do you hear of a law being rescinded? Almost never. Yet, with every new administration, new… Read More

You Keep Me Hanging On …

On Friday, the frustration with this market took me back to the music of the 60s … “Set me free why don’t cha babe Get out my life why don’t cha babe ‘Cause you don’t really love me You just keep me hangin’ on” That’s the chorus from “You Keep Me Hanging On,” a big… Read More

The 500 Year Market Top

The 500 Year Bull Market If often talk about the 500 year bull market. From my extensive research in economic cycles, the more specific measure is 516 years (3 times the 172 market crash cycles). If the “orthodox top” of the market was in 2007 (which also coincides with a 172 market top (and the… Read More