September 19, 2021

MarketMap2021 Issue #14

A major test of the cubby bear market is expected this week. The downtrend that started in the Dow on August 16 needs to invert the shortest cycle lows due early this week, in order for the bear to be for real and a forceful trend.

Trends are aberrations.  For a pro-directional move to take place ( i.e., the market was down yesterday means it will be down today and that will be followed by a down day tomorrow, etc) the market must break the cycle to one smaller degree.

MarketMap™-2021 pointed out in the last issue that “tidal forces tend to keep the low and highs trading in two weeks from low to high and two weeks back to a low.” This is a natural occurrence that all investors and traders observe daily. It is a four-week peak to peak cycle and a four-week cycle from low to low.

It should be intuitive and obvious that during up trends the high pivots become inverted – may only last a day or less and during meaningful declines the low pivots last only a day or less, aka cycle inversion.

From the peak in the Dow on the 16th of August – a tidal low was expected- and since that inversion, each row in the table is highlighted in red denoting a downtrend.  The high on the 7th of September happened for the FANG and Nasdaq pointing cycles lower into the next COT due early this week, the 20th.

Here is the key if …

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