Stocks kept climbing in February. The LT wave did an OK job in calling the major swings. But in an ongoing uptrend the downswing tend to be short or shallow and that’s exactly what we got.
Here is the LT wave for March:
The wave projected February 1 to be a low followed by strength, which panned out OK. The subsequent weaker period only produced a few days of downside action and the S&P 500 rallied to 2800+ by the end of the next stronger period. The projected weakness in the final week led to sideways consolidation.
The March pattern projects weakness until around the 4th followed by a strong period until the 22nd, although this could contain a quick pullback around the 14-15th. The final weak of the month is weaker again.
For new readers: the LT wave is experimental, so we can’t give any guarantee that the projected patterns will materialize. We can be happy if it “works” about 60% of the time.
Hi Danny can you clarify what is orange, blue, yellow & green? I work heavy with the other LT software but this one is different. The stock I am working with has release data I like to compare with this one you are presenting. I show in my chart this and next week red and corrections, mix results 3rd week of march and green week last one in march. used 800+ days of data accumulated with my stock results. Wondering if there’s a sync with your S&P. Thanks!
Earlier posts give some explanation about the LT wave charts: https://lunatictrader.com/lt-wave-chart/
The green and orange lines are just manually added to make it easier to see the weaker and stronger periods, based on yellow and blue lines being mostly above or below the neutral line for extended periods.
The LT wave is for S&P 500 index. Of course, many stocks have a high correlation with the S&P 500.