As of 04/24/2024
Indus: 38,461 -42.77 -0.1%
Trans: 15,078 -358.61 -2.3%
Utils: 893 +6.79 +0.8%
Nasdaq: 15,713 +16.11 +0.1%
S&P 500: 5,072 +1.08 +0.0%
|
YTD
+2.0%
-5.2%
+1.3%
+4.7%
+6.3%
|
 39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 |
As of 04/24/2024
Indus: 38,461 -42.77 -0.1%
Trans: 15,078 -358.61 -2.3%
Utils: 893 +6.79 +0.8%
Nasdaq: 15,713 +16.11 +0.1%
S&P 500: 5,072 +1.08 +0.0%
|
YTD
+2.0%
-5.2%
+1.3%
+4.7%
+6.3%
| |
|
39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 | ||
Released 2/28/2022.
Below is the updated forecast for 2022 as of the close on Thursday February 31. Captions appear below the pictures for guidance, so be sure to scroll down far enough to read them.
On some of the charts (all except the CPI chart) the prediction in red is based on the work of Edgar Lawrence Smith in the 1930s. Smith said that the stock market followed a 10-year cycle. Each year tended to repeat the behavior of the year a decade earlier. In other words, if you averaged all years ending in 1 (2001, 1991, 1981 and so on), that would give you a forecast for 2011. For 2012, you'd make a similar average, only use 2002, 1992, 1982, and so on. That's what I did for the market forecast charts which follow.
This is a graph of the chart pattern indicator (CPI) against the S&P 500 index. Briefly, the CPI counts the number of bullish patterns to bearish ones in the belief that at significant market turns, the bearish patterns will outnumber the bullish ones, or vice versa. The thin blue line at the bottom of the chart is the CPI.
The indicator shows a bullish signal as of Monday. That's clear by the vertical green bar on the far right of the chart. The indicator line, the thin blue one near the bottom of the chart, also shows strength as it approaches the top of the scale (100).
The forecast (red line) has diverged from reality. If you use your mind to flip the red line vertically, it will be a lot closer than what it shows today. Maybe we can use the inverted line as an expectation of what's to come.
The forecast shows the index getting weaker, starting later this month and dropping until July.
This chart also shows divergence between the index and the forecast. Weakness sets in near April 1 and the index drops until July, if the forecast is correct.
More divergence, peak in March, followed by a valley in July. After that, expect a modest recovery.
This is the 4-year forecast starting from January 2022, weekly scale.
After the index bottoms in July, expect the markets to rise until at least 2026. That period will be a good time to buy and hold.
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