Will 2017 be a 7-year itch?

I went to our local ATAA meeting on Monday night and the focus of the presentation was on Stock Markets: Cycles and Seasonality. There was a cycle noted on stocks, and more specifically, the DJIA index that caught my attention: the cycle being that the 7th year of each decade generally results in a significant pullback. I’ve scrolled back through the decade charts of the DJIA index and, whilst I do see some deep pullbacks in this year during some decades, I’m not sure that this really constitutes a ‘cycle’. Still, it might be worth keeping in mind as we head toward 2017!in

The way I see the various decades for pullbacks is as follows:

1910: yes.
1920: no.
1930: yes.
1940: no.
1950: a little pullback.
1960: no.
1970: yes.
1980: yes.
1990: no.
2000: yes.
2010:  ???? To be determined!
 
So, at this point, the noted cycle is obvious in 5 out of 10 decades, as I see it. Let me know what you all think though!
 
1910:
djia1910
1920s
djia1920
1930s
djia1930
1940s
djia1940
1950s
djia1950
1960s
djia1960
1970s
djia1970
1980s
djia1980
1990s
djia1990
2000s
djia2000
2010s
djia2010
 I did show the presenter the cycle chart that I am keen on; the one on the S&P500 (a similar pattern is on the DJIA though too):
spx70years
Maybe we can both be correct! He was suggesting that 2017 could see a pullback and I am still wondering if 1,600 might get a test before bullish continuation.

 

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