CyclicThe 392 cal days obviously works for XJO and XAO and not...

Cyclic

The 392 cal days obviously works for XJO and XAO and not SPI, which exceeded that high of 14/02/02 by 3 pts and 2 pts on 7th and 8th March.

371 days may work out and worth watching forward or examing back for sure. But because 392 is an Armstrong leg exactly and I know his model works, that gives it great importance IMO.

From my perspective I could argue best 2 out of 3 or something as silly, but it doesn't pay to get too pedantic with cycles is my approach.

Likewise that Eurostoxx50 chart with its high last year in June, not July and not Oct or Nov is worth considering from a cyclical viewpoint on a global basis.

Of course then taking its July 15 low as possibly a major low does not mean that other markets cannot make lower lows.

In fact already we have seen our local markets make new lows last week while other markets did not.

Since 392 has signs of working then it might pay to watch it from highs made in other markets, eg, Oct top in the US and Nov high here.

The new low here last week is not a surprise as I had surmised for quite some time that resource stocks would suffer when the US bounced.

The indications are still that resources will be under pressure till Oct maybe Nov, so even if US markets bounce, we will be handicapped.

I would like to see a intraday high in the US Monday night at max then another drop for a (higher) low this week, then more rally and a final (higher) low mid Oct.

Whether that happens or not, it seems we have met the minimum requirements of price decline, time decline for a completed bear market as seen since 1980.

I do think this is just phase one and no new bull market will be seen before mid 2013 here and probably later in the US.

Maybe a new bull could start here as no one who studies history would expect a new bull starting in an "8" year, and so it would be sneaky.

However, it would be most rare, and normal suggests a "B" wave rally or some sort of topping into this 40 year top and then a more severe bear in mid next decade.