The S&P And The Seasonal Cycle

Chaos Clinic for 6/25/2021
 

This chart shows S&P EMini over the past 4 months. It helps put the past two weeks in context.

In prior Chaos Clinics I've noted the helio Pluto support and resistance levels. They help one to see the harmonic ratios between moves.

The most notable thing about last week's low was that it came exactly on the summer solstice. Many markets follow the Earth's seasonal cycle of solstices and equinoxes. Our holidays cluster near these dates.

We also have holidays clustered near the midpoints of the seasonal swings. So there is a natural tendency to divide the year into eight parts. Two swings of such a cycle are shown by the yellow line on the chart. The rally portion moved 360 degrees, with the pullback portion being just 90 degrees.

Given the strength of the solstice dip rebound, one might expect another 6 weeks of rally. On the other hand, one can label 7 moves of a possible Chaos Clamshell, so longs should be cautious.

This content was published on Dr. Al Larson's Chaos Clinic which you can attend each Friday for free.

Dr. Al Larson has developed a complete Chaos Model of Markets, four unique courses that let you become a Certified Chaos Trader, some very unique eMylar fractal pattern overlays, and tools that permit forecasting individual stocks and markets years in advance. You can also sign up for a free weekly email, and attend a free Chaos Clinic on Fridays. To learn more, click on the author's profile.

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