As I mentioned in one of my prior charts the oil and stock cycles have been tethered together for a while now. Once oil began the move down into its daily cycle low stocks will most likely follow.
This morning oil has broken it’s cycle trend line so the odds are good that the corrective move into the cycle low has begun. This will be the phase where the bears will come out of the wood work calling for the end of the rally and stocks will soon crash. They will be wrong. This is just a normal corrective move after what has been one of the most powerful rallies in the last 60 years. Once it works off the overbought conditions I’m going to predict that during the second daily cycle we will see the S&P test the all-time highs.
Remember the time to buy is when you are scared. We should get one of those opportunities in the next 5-7 days.
