S&P 500 - 21st February 2024 | @ 76 Days | + 4.33%

Last trade: + 4.33% | 'B' class signal detected in the S&P 500. Running at an average wavelength of 76 days over 15 iterations since Feb 2021. Currently peaking

ΣL Cycle Summary

There is little doubt now that the low in October 2023, a trough of this excellent cycle around 76 days, was also a trough of a larger, periodic component. The magnitude of that larger wave is likely the nominal 40 week component, described recently in our US Stock Market composite update and which is now in the process of peaking. These two waves are well synchronised over the last several years and it will be interesting to observe how well punctuated the downtrend of the 40 week wave is by the smaller wave in coming months.

The most recent trough of the 80 day nominal wave, the subject of this report, proved to be mild and, as expected, the subsequent move up was once again bullish from early January. It really has been a quite remarkably linear and bullish move up from the 40 week low in October 2023, leaving many a permabear, devoid of the time frequency insight, exasperated! If the same amplitude is maintained to the downside in this forthcoming retrace it will be fascinating to watch. Readers should also note the trough in the VIX, for this shorter wave ~ 76 days (inverted), posted recently.

Trade Update

See also: Live ΣL Portfolio & History

Summary of the most recent trade enacted with this signal and according to the time prediction detailed in the previous report for this instrument, linked below.

Type: Buy - S&P 500 9th January 2024
Entry: 9th January 2024 @ 4756.50
Exit: 21st February 2024 @ 4962.64
Gain: 4.33%

Before and After

Signal comparison between our last report and the current time, in chart format.