In the chart above the Monthly ADX dropped below 40, or 35 in the case of 2007, prior to the final highs being achieved. When the monthly ADX gets above 35, only a close below 35 will issue a buy or sell signal. Once the ADX gets over the 40 mark, the 40 line becomes the buy or sell signal. Using this indicator on a longer term basis, while also following the weekly, daily and sometimes hourly indicators should keep me on the right side of the trend. Once the market broke above the upper red break line and the white 1982 projection line I knew it was targeting the 1987 projection, and this line only rises as time goes by.
In the chart above you can also see the markets reactions to previous trend lines. The market found it's 2007 high at the 1987 projection. It found it's 2002, 2010 and 2011 lows at the 1990 uptrend line. It found it's low in 2009 at the 1982 uptrend line. Once the market broke above the upper red break line and the white 1982 projection line I knew it was targeting the 1987 projection, and this line only rises as time goes by.
I am looking for the completion of the iii of 3 wave and I have a few cycle thoughts on that timeframe. The first comes from the equinox chart that shows market turns occur near the Spring and Autumn Equinoxes.
the Spring Equinox is March 20th, 2014. The VIX Cycle low is showing up March 10th, 2014. The 24th TD from the Q's low is March 11th, 2014. All these time signatures are aligning for something, what could it be? I'll keep you posted, but the charts ARE NOT reflecting a MAJOR decline at this time. I'll be looking for a drop to 1600 by July, 2014.