I only use Cycles as a rough guide but I have observed the following:
– 84 wk Cycle on DXY seems feasible and generates the next trough around mid-Feb 2013
– 42wk cycle appears to have topped around mid July ‘12
– Cycles are more prominent within triangles and the 84wk cycle has been reasonable accurate
since 1994 (and particularly accurate over the last 5 troughs)
The smallest cycle is 35 weeks and we are approximately 1/4 of the way through – so initially expect to see gains on the US markets until we reach it’s mid point (around mid July) where we could begin to see the decline lasting until around mid November 2011 where it should bottom out.
Using the markets bottom in March 2009 as my starting point, we can see that the crash was the results of several major cycles ending simultaneously. Around mid November 2011 we will see the 3 smaller cycles converge, which will in fact be the mid point to the larger cycle. This suggests that the market will not crash as deep as it did in 2009, but it could still be quite significant drop.