Michael Turner has just launched Signal Investor. The following is an example of some of the commentary you can get from Turner’s groundbreaking services.
When market volatility rises, it’s always a good time to step back and take a look at the big picture. Is the market building a base? Testing highs or lows? And what does the pattern say about the next most likely path for the indices.
To get a read on all of this, I look at forward-looking time-cycle forecasts. I analyze the past three years of technical trends. And, I also look at the market over the past 114 years.
As you can see in the chart above, the market has experienced 4 major “Consolidation” periods where it traded inside a relatively well-defined band. The amazing ‘tell’ in the chart is that 100% of the time, once the market has broken out of a Consolidation period to the upside, the market ALWAYS went on to a multi-year bull market.
The average duration of these bull markets is about 12 years. Nothing guarantees that the market will continue this pattern the future, but it’s insightful to look at repeating patterns over a long period of time.