Time is ticking for World Indices

The time is ticking away for World Indices to correct for a medium term correction in a possible longer-term uptrend. Last week we mentioned: “A short-term top in World Indices has likely been set. In last two articles we mentioned we expected a top to be formed around January 18th – January 21st 2011, with the FTSE100 and S&P500 as an example.  There is a high probability (80%) that the expected short-term top has been set yesterday. The volatility and the move downwards is exemplary for a change in trend.”

We hold the opinion that this short-term correction will have a very short life, and may already have occurred. At the moment we are consolidating due to the stronger cycles to drive the market upwards,towards the mentioned confluence of cycle to complete in time, while the smaller cycles are trying to correct on the short-term but are weaker. See below example on the S&P500.

The market is not likely to start its medium term correction before mid April – mid May 2011.
There is a confluence of cycles coming together at that point in time that will cause the market likely to correct between 10-20%. It is still unclear of this will be a steep and quick correction or that this will take more than several months. Probable Time Target: mid April to mid May 2011. Likely Price Target: 1358.55 on the S&P500.

Be aware any correction on the short-term as mentioned in our earlier articles of 2011 can still happen between now and Mid February. Take care!

As long as we stay above the lows of July 2010(on S&P500: 1010.91) the market is likely to  continue upwards after the mentioned correction of April/May this year. We will publish the most likely dates and targets beyond April-May 2011 for the mid-term forecast to our paid subscribers only.

We will post more analysis as the market develops. Take care and stay tuned.

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Short-term Top in WorldIndices has likely been set

A short-term top in World Indices has likely been set. In last two articles we mentioned we expected a top to be formed around January 18th – January 21st 2011, with the FTSE100 and S&P500 as an example.

There is a high probability (80%) that the expected short-term top has been set yesterday. The volatility and the move downwards is exemplary for a change in trend.

We expect a short-term bottom to occur around the first/second week of February 2011. How shallow or deep the trough will be, is difficult to say. We expect a 4-9% correction in most indices towards the Fibonacci 50-61,8% retracement zone, after which the market will likely continue on the main trend. See below chart on the S&P500

Be aware. The market position we are in is comparable with the market position, patterns and volatility 12 years ago. It seems that a powerful 12th year cycle is recurring in a similar way as twelve years ago. So, be prepared to see quite some volatility ahead and be carefull.

We will post more analysis as the market develops. Take care and stay tuned.

Join a group of select individuals and subscribe to our free newsletter here and we will put you on our mailing-list. We respect your privacy. We don’t sell, rent or share your name or email address.

© 2001-2010 MarketTimingCycles.com. Reproduction or use of this material is allowed only upon prior consent of the publisher. This article is not part of a paid subscription service. It is a free service and is aimed to educate and demonstrate the successful application of cycle analysis. At no time will specific security recommendations or advice be given. Whilst the information herein is expressed in good faith, it is not guaranteed. A trading system that never makes mistakes does not exist. Error and uncertainty are part of any effort to assess future probabilities. Trade at your own risk. Read our full disclaimer and Terms of Use.

World indices awaiting a short term correction

Last week we wrote: “The world Indices are due for a short-term correction, but the larger trend is still bullish.”  We noticed that many indices around the world have made new highs. How long will this bullish trend continue? The larger cycle is not likely due yet until early april. However, the smaller cycles are due for a short-term correction, but their impact on the correction could be diminished because of the strength of the larger cycle which in its end phase  is always very strong.

World Indices due for a correction

The world Indices are due for a short-term correction, but the larger trend is still bullish. On January 10th last year we wrote: “The S&P500 has now touched the current upper trend line as formed since early last year. On January 15th 2010 we are also 45 weeks or 225 trading days after the March 2009 bottom. In Gann terms this point in time is typically a hard angle that typically come in as a high.”  We now seem to be exactly at the same time for a correction to occur.