Below we see the S&P 500 price cycle projection. Over the last year, all seven buy and sell signals have been profitable. This is evident by looking at the green buy and the red sell signals on the graph. Note that the cycle is bottoming and is flashing a buy signal. However, a sell signal follows through mid-May through June. Next month begins the seasonally weak ‘sell in May’ period. The combination of the down turning dynamic weekly cycle and the softening static seasonal cycle are likely to pull the index down. Recession fears, higher rates, and a declining money supply will likely push investors into selling.
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