US Indices may retrace to mid March
US Indices still look vulnerable for a further slide downwards
Introduction
The Gann Master Cycle indicator is still signalling a probable further downslide after the 3rd week of March 2022 for the US Indices. Until then a small recovery is expected for both the $DJIA and $S&P 500.
I do not think the recovery will be huge, but you never know as anomalies can occur.
I am expecting the index will hoover around the current prices levels for both the $DJIA and the $S&P 500 until mid March 2022 and stay below the 200 day Weighted Moving average, and probably also below the 10 month moving average.
We can not rule out that market makers going into 3rd week of March 2022 (and with the quarterly option expiration end of March) will further force the markets in a further direction downwards with a revival afterwards into mid April 2022. Or vice versa. My bias is to the upside, but a move upwards may be limited as the Gann Master Cycle is pointing downwards.
The volume has not seen levels like in March 2020, so a real capitulation of investors may not have been reached yet.
If the Russia Ukraine conflict escalates further this may give a total different outlook. Also the FED may be rising interest rates, but perhaps this is already shown in the charts. This complex environment makes it difficult to make trading decisions based solely on past cycles.
We will have to watch the chart in front of us. Anomalies can happen and if there is a cease fire in the coming days this may look favourable for many of the stock indices in the world.
Do not try to catch a falling knife, or step into the market to quickly without any confirmation a change in trend has occurred. So, be careful out there. No advice.
Our paid subscribers here on Substack can continue reading below mid week update on the Gann Master Cycle following the S&P500 and the $DJIA.
P.S.: On all of our communications, posts and analysis our Terms of Use and Disclaimer apply. Hypothetical or simulated performance based on past cycles have many limitations. Hence, past performance is no guarantee for the future. Anomalies can occur and cycles can contract, extend or invert. So, be careful and always watch the charts in front of you.