phasing

Video: What to Expect Next in Equity Markets Worldwide

40 day or 80 day?

One of Hurst’s primary principles is that markets move in common with each other. This is entitled his ‘principle of commonality’ and is evident most of the time to the alert Hurst trader. The latest video from David Hickson at Sentient Trader provides a comprehensive look at the options. The S&P is the main market viewed but comparisons with the DAX, DJIA and NASDAQ are explored. There is also a quick look at the latest phasing in EURUSD and GOLD.

From my own point of view while the 80 day cycle low is compelling in the DAX I am still trading with the trough on May 7th as a 40 day. A move above the recent record highs in the US markets would make me reconsider this viewpoint but strictly speaking as price has penetrated the 20 week VTL we should not see higher highs until the 40 week low is in.

The DAX and EUSTOXX may well be divergent at this point. I believe this week will reveal the correct analysis.

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