Below is a chart of the S&P 500 ($SPX) going back to 1999. The red marker on the bottom shows a defined cycle with the same period between each peak and valley. I’ve marked blue dotted lines to show the bottom of the cycles. You’ll notice that the bottoms of many of these defined period cycles have marked important turning points in the market. Now, not every trough was deemed to highlight a peak or bottom in the S&P 500 but I find it interesting that many of them do. The last three cycle bottoms coincided with the 2011 high, near the 2012 low, and a short-term low after a few percentage points of selling in 2014. The lows also seemed to have marked the 2000 and 2007 peak in the equity index.
Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+, Twitter, and StockTwits.