S&P 500 Yearly and Quarterly Levels | April to June 2024

At the end of the first week of 2024 the S&P 500 breached the Yearly Mid (R)esistence Level 1 (YMR1) at 4,781 to the upside. In March the S&P 500 consolidated above the YR1, and on April 1 we saw a reversal at the (Q)arterly (M)id (R)esistence Level 1 (QMR1) at 5,228. 

 

The third down week of April (the third week of the second quater) took out the March low and now trades below the second quarters (Q)uarterly (P)ivot (P)oint (QPP) at 5,059 at the lower channel line that includes all price action since the October 27, 2023 low.

 

 

 

 

 

The entire first quarter of 2024 extended the 2023 fourth quarter's upswing (X). In terms of ICT Seasonality and the Quarterly Theory 2024 has an XAMD pattern. April and May should be (A)ccumulation, May to November (M)anipulation, and November to year end directional Distribution. Monday, April 1 - the 90th calendar day of 2024 and the first trading day of the second quarter - made a new high and turned down. QMS1 at 4,956, QS1 at 4,851 and YMR1 at 4,781 are the next downside targets.  

 

 Everything is timed and measured. 

Third week and three pushes to the downside. From 5,278 to 5,000.

Some 90 points per week.

April 19 (Fri) or April 22 (Mon) daily reversal likely. 

First upside target: low of week two = YR1 at 5,110.

Downside targets: QMS1 at 4,965 and QS1 at 4,853.

Know the function of 50.05 % retracements. Understand the calculation of so called 'Pivot Point's', 'Supply & Demand' or 'Orderblock' levels in any segment and time-frame of all Market Maker Models/Market Making Schemes. The Three Day Cycle. The Three Week Cycle. And Price and Time as easy as One-Two-Three: 1 + 1; 2+1 ; 3+1; 1*1 ; 2*2 ; 3*3 and 1/1 ; 1/2 ; 1/3 and 1/4.  Today (Thursday, April 18) is Trading Day 9 since the April 1st reversal (excluding the inside days). 

We came down from 5,478 to the quarterly Pivot Level at 5,059. This is now the most important reference level for any market move into end of June. 

This year is Year 4 in the (36-54 months long = 12-18 quarters) so called Four Year Cycle. The 2024 Yearly Pivot Point/Level 

as well as the 2024 second quarter's Pivot Point/Level are all the way down around 4,456.

 

Reference:

 ICT Seasonality | Michael J. Huddleston

The Quarterly Theory | Jevaunie Daye

Franklin O. Ochoa Jr. (2010) - Secrets of a Pivot Boss - Revealing Proven Methods for Profiting in the Market.

 

Top Reasons to Exit S&P Short Positions Soon | Allen Reminick

The S&P market has been behaving as expected. It looks as if April 15 (Mon) or so could be a low followed by a bounce for a few days until April 18 (Thu) followed by another decline into the April 24 (Wed).

 

 Apr 15 (Mon) Major Low ?
Apr 18 (Thu) High
Apr 23-24 (Tue-Wed) Low

Bounce
May 9 (Thu) Major Low ?

May 24 (Fri) Major High
  Jul 24 (Wed) Major Low

 

Today is April 14 (Sun) and we're looking at this forecast as being very similar. But there are several different variations of this particular pattern. The most reliable one so far has been the year 2000 market. It is repeating almost exactly what happened in April of 2000 and that low came in on April 14. But we are looking for a low around April 23-24 (Tue-Wed), another bounce and another low around May 9 (Thu). The May 9th low may not be lower than the market is right now.

The analogs we're using are the year 2000, the 1996 market and the 2006 market. All of which are connected to the present market and you can see the overlap of the 1996 and the 2006 markets and how they go forward is extremely similar but not identical.

They both have a high late May, they both have a low late July. But from now until late May they have different variations on how they go forward. So at this point one needs to be cautious about expecting continued lower prices because the fourth wave does not have to be a big decline. It's after the Elliott fifth wave that you'd expect to see a major decline. 

 

After this whole correction phase is over we're expecting a new high by May 24 (Fri), a strong rally in the month of May and then after that a very big decline from May 24 (Fri) down into July 24 (Wed) area. That could be a very significant short position for those who want to go short or at least one once a hedge, one's long positions during that time. After that July low the market should again rebound strongly and by the end of the year make new highs.

So we're looking at a fourth wave correction which is probably going to end either in the next two weeks or it could be as late as May 9 (Thu) and then the fifth wave rally until late May followed by an ABC meaningful correction of the whole move from October 27th until May 24th that whole up move should be corrected in the two months after that. So if you're looking for a big decline it's not likely to happen now. It's more likely to happen after the end of May. 

 

Quoted from:
Allen Reminick (April 14, 2024) - Top Reasons to Exit S&P Short Positions SOON. (video)

 Solunar Rhythm, Cosmic Cluster Days & Sensitive Sun Degrees | April 2024

 

 

See also:
Tom McClellan (March 29, 2024) - Crude Oil's 10-Year Leading Indication for US Stock Market.

Crude Oil's 10-Year Leading Indication for US Stock Market | Tom McClellan

One of the big picture forecasting tools is crude oil prices as a leading indication for the overall stock market. The first chart shows crude oil prices back to 1890 compared to the Dow Jones Industrial Average plotted on logarithmic scales. The price of crude oil is shifted forward by 10 years. The correlation isn't always perfect, but generally speaking, when there is a rise in crude oil prices, 10 years later, there is a rise in the stock market. When crude oil prices go flat, the stock market goes flat. 

We are not yet quite at that 10 year echo point in stocks, which would equate to June of 2024, 10 years after crude oil peaked. That means the next few years are not going to be so great, especially between now and early 2026. Early 2026 will be a great time for investors to ride the stock market long all the way to 2028. 

 

Quoted from:
Tom McClellan (Mar 28, 2024) - 'Unpleasant Time' Ahead For Stock Market. (video)

 

 

S&P 500 March-April 2024 Seasonality │ Jeff Hirsch & Wayne Whaley

After 5 months of solid gains, are markets ready for a pause? Bullish Presidential Cycle Sitting President Pattern flattens out the mid-February to late-March seasonal retreat considerably without 2020 in the average.

 'Best Six Months' ends in April.

April is the final month of the “Best Six Months” for DJIA and the S&P 500. From our Seasonal MACD Buy Signal on October 9, 2023, through (March 21, 2024), DJIA is up 18.4% and S&P 500 is up 20.9%. Fueled by interest rate cut expectations and AI speculation, these gains are approximately double the historical average already and could continue to increase before the “Best Months” come to an end.

This AI-fueled bull market has enjoyed solid gains since last October and will likely continue to push higher in the near-term, but momentum does appear to be waning with the pace of gains slowing. With April and the end of DJIA’s and S&P 500’s “Best Six Months” quickly approaching we are going to begin shifting to a more cautious stance. We maintain our bullish stance for 2024, but that does not preclude the possibility of some weakness during spring and summer.

 

Reference:
Jeffrey A. Hirsch (Mar 24, 2024) @ Twitter/X 

 

 

Reference:

 ICT Seasonality | Michael J. Huddleston

The Quarterly Theory | Jevaunie Daye

 

THE CORRELATION MODEL SEES A NEGATIVE LAST WEEK OF MARCH FOR THE S&P. Provided a time frame of interest, my correlation model calculates the Correlation Coefficients (-1 to +1) for the past performance of 4165 different time frames over the prior 3 months vs the performance for the time frame of interest in search of the period which has demonstrated the most barometric acumen in predicting the performance of the upcoming time frame of interest. 

 

This week I ask the model for it’s prognosis for the S&P in the last week of March. It responded that the prior ten calendar days (Mar10-24) had a very uncanny track record of forecasting the last week of March with those 2 time frames having a very strong NEGATIVE correlation which doesn’t bode well for next week given that March 10-24 was up 1.63% this year.  

 

Note the 3-10, March 24-31 performance in the far right category below in those 13 prior years where March 10-24 was greater than 1.2% for an avg wkly loss of 0.74% with 1% moves 1-7 to the downside.  This contrasts dramatically to the 11-2 performance when March 10-24 was less than -0.5%.  Fingers crossed that it is wrong this year. 

 

The outlook for April is much brighter. 

 

  

Reference: 

 Wayne Whaley (Mar 23, 2024) @ Twitter/X

 

[ oftentimes true: ]

 

In Bull Markets, New Moons are Bottoms, and Full Moons are Tops. 

In Bear Markets, New Moons are Tops, and Full Moons are Bottoms.

 

The SoLunar Rhythm in March 2024.

 

 

 

 

 

Election Years Are Different | Tom McClellan

I have been writing about the Presidential Cycle Pattern since 1994, using the pattern which is derived from averaging together SP500 price data in 4-year chunks of time. One difference in how I do this versus others is that I start each 4-year period as of November 1 instead of January 1, to better align with election day. This week's chart looks at the differences (and similarities) in the versions of the Presidential Cycle Pattern depending on what type of president is in office. The green line reflects first term presidents from a different party than the last president, and reflects the condition we have now.

  » March is typically a sideways month, part of a larger sideways pattern 

lasting all the way until late May. The market normally rallies from June to election day. «

[...] A lot of the time, the two patterns behave very similarly. But in March of the election year, there is a notable difference. When a first term president is in office and running for reelection, March is typically a sideways month, part of a larger sideways pattern lasting all the way until late May. March is different, though, when a second term president is in office (red line). [...] The stock market normally rallies from June all the way to election day [November 5] when there is an incumbent running for reelection. And usually an incumbent will win reelection. That is how things normally go.

 

Larry Williams identified June 2024 in the current decennial pattern
 as  » the sweet spot with 90% accuracy « to buy and hold until December 2025. 

[...] This year we have a challenger who is not an unknown quantity (to Wall Street), who at the moment has a slight lead in the polls. This type of condition is totally backwards from how election years usually go.  Add to that the additional unknowns about how President Trump is facing multiple trials for alleged crimes, and we have an election year completely unlike any previous one.  So trying to run a forecast model based on how things have gone in prior election years may just not work this year.
 

Reference:
Tom McClellan (Mar 14, 2024) - Election Years Are Different.

The Physics of the Seasonal Cycle | Al Larson

Any grade-school pupil can tell you when the seasons begin. In the northern hemisphere, generally, spring begins March 21, while summer begins June 21. Autumn begins September 23, and winter begins December 21. Actual dates may vary by one day in a particular year. So step one is simple.

 

The physical reason behind the seasonal cycle is the tilt of the Earth's axis. The 23.5-degree tilt of the Earth's axis causes more direct heating of the northern hemisphere in the summer, when the Earth tilts toward the sun. It causes less heating in the winter, when the Earth tilts away from the sun. This change in heating and cooling causes the seasonal weather patterns that we are familiar with.

 Charged particles from the sun form a teardrop-shaped envelope about the globe called magnetosphere.

 

Not so well known is the effect of the seasonal variation on the Earth's geomagnetic field. As the sun emits energy, charged particles flow outward, carried by the solar wind. As these particles sweep past Earth, they form a teardrop-shaped envelope around the globe called the magnetosphere.

There is a seasonal variation in two important parts of the magnetosphere. When the Earth tilts toward the sun in the summer, the charged particles can more directly flow into the north pole, where they affect the Earth's magnetic field. This effect is lessened when the Earth tilts away from the sun in the winter.
 

The second magnetic effect is on the magneto-tail, that part of the magnetosphere which streams away from the sunny side of the Earth. As the Earth tilts toward the sun, this tail "rides higher." As the Earth tilts away from the sun, the tail "rides lower." This affects how our moon, which moves in and out of the magnetosphere, interacts with the Earth's magnetic field.

So what does this have to do with stocks and commodities? Scientific evidence suggests that these fluctuations in the Earth's magnetic field affect humans. Studies show that magnetic field changes are linked to blood PH changes, which in turn cause mood swings. Perhaps the psychological mood swings of traders are also subject to these magnetic field changes.
 

More obviously, the seasonal cycle could be expected to affect crop prices, such as those of wheat, corn and other commodities. Similarly, with most businesses running on a quarterly profit cycle, seasonal variations in the buying and selling of materials and equipment can be expected. Thus, on both a fundamental and technical basis, a trader can expect season price variations in stocks and commodities.

To perform step 2, mark the dates of the cycle on a chart with solid dots, and place them above or below the price as you estimate that price is high or low relative to what it was approximately one-fourth cycle earlier. Points do not necessarily have to alternate between high and low. Now look for cycle "inversions." If two lows or highs occur in succession, the cycle has "inverted" between the points. A normal inversion point is halfway through the cycle.

Quoted from:

Al Larson (1991) - The Physics of the Seasonal Cycle.

 

See also:

TPR (2012) - Moon & Markets.
TPR (2012) - Sun & Markets.

Al Larson (1997) - Energy Flow Theory & Financial Markets.  

Bitcoin April 2024 Halving - Target 150K+ by October 2025 | Peter L. Brandt

Bitcoin halvings are strongly associated with past bull market trends in Bitcoin. Also, a strong correlation exists between the halvings and the timing of the associated bull trends. More precisely, in the past the halvings have been right at the half-way point of major bull cycles. In other words, the lengths of bull trends following the halving dates have been about equal to the length of the bull trends prior to the halving dates [...]

 

The 2022 to 2025 Bull Cycle

We know what HAS BEEN in previous bull cycles. We have confidence in what we already know. But projecting past price behavior into the future is highly speculative. The next halving is April 22, 2024. Assuming that the low of the current bull cycle was in late November 2022. That low was 75 weekly bars before the April 2024 halving.
 

If the bull trend extends 75 weekly bars beyond the next halving, a price high would occur in early October 2025. If the pace of the bull trend after April 2024 is at similar pace to the bull trend since the November 2022 low, then the high in October 2025 could be around $150,000. 

 

However, the post-halving advances during previous bull cycles have been much steeper than the pre-halving advances.

 

 

 

Quoted from:
Peter L. Brandt (Feb 14, 2024) - The precocity of bull markets in Bitcoin as associated with halvings.

 

 

Jeffrey A. Hirsch (Feb 28, 2024) @ Twitter/X

 

 Bitcoin Fear And Greed Index (Mar 10, 2024)

Gold Breakout - Target 2,530 to 2,700 | Peter L. Brandt

This is a FOR REAL breakout in Gold. Goldfinger points to a target range of 2,530 to 2,700.

 

Peter L. Brandt @ Twitter/X (Mar 06, 2024)

 

June is typically the lowest month for Gold. 

The graph is based on the average prices; there are times when June tops rather than bottoms. 

Buy dips around monthly pivot levels. 

Friday’s Commitment of Traders (COT) Report from the CFTC had an interesting point about gold. The big money "commercial" traders responded to the rally in gold this week by posting the biggest jump in years in their collective net short position. This marks this week’s pop as at least a short term price top.

There has also been a big jump in total open interest lately. Usually such events mark a blowoff top in gold prices, although occasionally they are seen at a breakout point.

 Curiously, though, the small speculators in the "non-reportable" category were not chasing this week’s rally, and instead they reduced their net long position. They have not been net short as a group since 2016, so the analysis task consists in evaluating their relative net long position as a group. Having the small specs feel scared by this rally says it has some enduring legitimacy, once the short term overbought condition can get worked off. 

Tom McClellan @ Twitter/X (Mar 09, 2024)

S&P 500 March 2024 Seasonality │ Jeff Hirsch

Over the recent 21 years March has been a decent performing month for the market. Average gains over the period range from a low of 0.78% by DJIA to a respectable 1.40% by NASDAQ. 

 

March typically opens positively but selling pressure and weakness tend to follow quickly thereafter with choppy trading until around mid-month. From here on the market generally rallied to finish out the month. End-of-Q1 portfolio adjustments have contributed to additional choppy trading during the last three or four trading days of March. Election year average performance is influenced by across-the-board double-digit losses in 2020, but March’s pattern is similar with weakness in the first half and modestly improved trading in the second half.

 

Reference:
Jeffrey A. Hirsch (Mar 5, 2024) @ Twitter/X

ICT Seasonality | Michael J. Huddleston

 

 

We are in the quiet part of the year still.
Spring is coming to the markets very soon.

The year, if viewed as a single range ... we are in the Accumulation phase still.
Don't blow your equity before the salad days return.

January to April is the yearly Accumulation.
April to May is the Manipulation.
May to November is the Distribution.
December resets the yearly range.

Power of 3

Now go lose sleep over it in your charts.

You won't appreciate this until you pour
over all markets and asset classes and then your ass will hit the floor.
 

 Michael J. Huddleston

 

 

Time is more important than Price.

 

 

Accumulation - Manipulation - Distribution

 

 

There are two sets of instructions that the algorithm follows:  

AMD-X and X-AMD

 

A = Accumulation (required for a cycle to occur)
M = Manipulation
D = Distribution
X = Reversal or Continuation

S&P 500 vs VIX and Seasonal Patterns

Corrections and short-term market peaks often coincide with exceptionally low levels of market volatility.

Reference: ISABELNET - Feb 28, 2024.

 

Beware of the Ides of March: This year also coincides with the seasonal decline during presidential election years where the sitting president is running. Support levels to watch in the S&P 500: 4800 old ATH and 4600 near summer 2023 highs.

 

 Reference: Jeffrey A. Hirsch @ Twitter/X - Feb 28, 2024

February’s last trading day historically bearish. DJIA and S&P 500 have been down 9 straight and 11 of the last 12. NASDAQ has tried to buck the trend, up 3 of last 4 years. Potential setup for historically bullish first trading day of March.

Reference: Jeffrey A. Hirsch @ Twitter/X - Feb 28, 2024

 

 Reference: Wayne Whaley @ Twitter/X - Feb 29, 2024

 

Reference: Larry Williams' 2024 US Stock Market Outlook.