Although certainly not conclusive, I believe we are several days away from finding out whether the 20 week cycle is dominant and at this point it certainly looks like it may be. A head and shoulder formation has been forming and if the neckline is broken that would certainly put an end to the 40 week cycle dominance theory as price would be projected to head down somewhere in the vicinity of 1968 S&P 500 cash and 1955.25 futures. Of course just rough estimates based on 100% projection of the head and shoulder formation peak to trough. I disagree as suggested that the 20 week cycle low may have already occurred. This does not mean a higher high then lat May cannot be reached only that it is not likely to be as high if the 40 week cycle had been dominant. I have attached a recent look at my own 7 year cycle analysis (not sure if it is the same as Silent One’s) but this analysis indicated that the 20 week cycle low still remains ahead of us as David suggested. Anything could happen in the next few days and the neckline could hold keeping alive the 40 week cycle dominance but it certainly does not look like that will be the case as of this Friday the 13th action. As always be on you toes for whatever may happen but it certainly looks like a significant profit opportunity is at hand.
The suspected 20 week trading cycle is marked and the nest of lows outlined along with a projected low if the head and shoulder formation fulfills its 100% projection. There is some short term timing indicating a possible reversal on Monday but the most important factor is to watch whether or not the neckline can hold.