Will The Sun Shine Today?

Good Morning:

• The 20-week cycle correction continues but appears ready to bounce off the 50-day line, 20-week line, Trendline connecting the October and December 22 lows, and 90-degree line from the top. The rounded level is 4000 on our chief market proxy, the S&P 500 Index.
• Note that the DNA of the 20-week moving average is the Nominal 20-week Hurst Cycle. Moving averages are a crude, late, and untimely method of tracking cycles.
• As such, however, if the 20-week average holds, we can have more confidence in a turn, likely with a double-bottom retest. Then the price will return to retest the recent high at 4208.50.
• As discussed yesterday, if the market does not hold the line here, perhaps another, Longer cycle is manifesting.
• Hurst Analysts are divided on whether the Nominal 18-month cycle bottomed in October or is diving into the 18-month process low now. The evidence favors the cycle bottoming last October, but carry the alternative outcome in your narrative just in case.
• Also, the Nominal Hurst 54-Month Presidential Election Cycle begins to exert a downward influence soon. Carry that forward in your narrative too.
• And our forecast for 2022 called for a rally into February, a medium dip into early March, a rally back into May, and further declines into the Fall. Ultimately, the year will likely be more of a sideways market with a slight upward bias.
• Our proprietary Helio Algorithm supports the bounce today, which has a turn date today, which began at Midnight EST.
• Briefly, the Algorithm forecasts Magnetic Field Field Strength associated with Sun Spot and Solar Flare Activity.
• Think of the Sun as a giant ocean with tidal waves.
• Under various gravitational influences from planet alignments, the tide increases, leading to increased solar activity. 
• Not only does a certain level of activity affect financial markets, but it also affects the weather, earthquakes, and the functioning of Satellites and other electronics.
• The chart above shows the recent signals, and they are highly accurate.
• As with most of our signals, they don’t forecast the gain or loss we might experience. We use our other work to set targets,
• For this turn, the price should test the breakdown area at 4068 (also the mean). Traders typically sell the first test of the mean after a breakdown. That is why a retest will likely bring us into the early March low forecast by the 60-Year Master Cycle. 
• Take a look at the signal back on 8/21/2022. That is the likeliest outcome from this turn. I don’t expect a similar decline to follow as in 2022, but more of a retest in the circumstances.
• I will be on the mic in the Trading Room today for the first few hours.

A.F. Thornton