Lengths of Market Cycles
Again, numerous market cycles exist, each simultaneously exerting its influence at any given time. Some cycles are more significant than others, with their amplitudes (the amount of movement that takes place as a result of that cycle) greater than those of other cycles. The reliability of some cycles appears to be greater than the reliability of others. The major concept to be recalled is that cyclical influences on the stock market are patest when a number of significant cycles coalesce in their direction, nesting, falling, or rising together. Cyclical influences are likely to be weakest when a number of signihcant cycles lie in opposition or are in neutral territory Here are some of the cycles that I have found to be most significant throughout the years. These are presented with the caveat that shifts in strength and length do take place from time to time, as with shifts in seasonal patterns.
The four-year market cycle
The one-year market cycle
The 22- to 24-week market cycle
The 11- to 12-week market cyde
The five- to six-week market cycle
The 15- to 17-day market cycle
The 7- to 10-day market cycle
The four- to five-day market cycle
The 17- to 20-hour market cycle
Each cycle tends to be roughly half the length of the cycle just above it and roug twice the length of the cycle below it. This pattern coincides with the A-B sequel that we have been observing.
We return now to examining cyclical patterns that have taken place through, the years.