Just wanted to share a quick chart. This is a 30-min chart of the 24-hour ES futures.
The blue and red lines are the canned Natal Forecast indicator. This is one of W59's forecasting tools which has been around since 2001 or so. Back before W59, I used to run a forecasting service based on this very tool. It's based on various astro cycles as measured in Chicago, and this tends to show up very strongly in any markets based there. On a 24-hour chart like this, you can really see cyclical nature of this tool.
Anyway, take a look at how the ES has been moving lately. All the highs and lows before July 3 were solved for by the red line, which is the "inverted" forecast. It's actually all the same forecast, it's just that the red lines are upside-down from the blue ones. So you can see highs in the red line correlated to highs in the market, while lows in the red line correlated to lows in the market. This continued up until the white line, when the market inverted and started following the blue line, and you can see that now it was the one that solved for all the highs and lows.
It's cool stuff. The big question (which has ALWAYS been the big question), is how do we know when the forecast will invert? I don't have a good answer for that, although I've come up with a lot of theories over the years. There does seem to be an inversion cycle at play, but it's a slippery bugger, and have been very difficult to pin down with any accuracy. The good thing is that once an inversion happens, the market tends to stick with it for awhile before inverting again. We had 7 swings that hit on the red cycle since the last inversion (not shown), and we've just had 7 on the blue one since the vertical line I've drawn. The market isn't as predicable as flipping every 7, but just thought I'd throw that out there as food for thought. Assuming the forecast holds, we should top this afternoon, and move lower into Monday.
Hope you all had a good 4th.
![Smile :)](./images/smilies/icon_e_smile.gif)
Happy Trading,
Earik