Is the Stock Market Turning Bearish?
#243 An update on US Indices: Nasdaq, S&P500 and DJIA.
Is the stock market turning bearish? In the last few days, I received emails from different analysts who are changing their tactics from Bullish to Bearish.
As Ray Merriman mentioned in his Nasdaq Composite Alert:
“According to the MMA Methodology, when a cycle takes out its starting price, it is rendered bearish. This is what happened on Thursday, February 27, 2025, when the NASDAQ Composite Index and the NQ Futures broke below their previous primary cycle troughs on January 13 and closed lower. Unless we see new highs taking out the highs on January 24 in the IXIC, February 18 in the NQ, February 19 in the NDX and QQQ, we are switching our strategies from bullish to bearish.”
I’m curious, as there are many planets in retrograde motion if the stock market is on the brink of entering a bear market. Often, a stock market may change direction at the inflection points of a planet going Direct or Retrograde. This period has not ended yet, as Venus just started to go Retrograde.
Is a bear case possible? Probably, given the current geopolitical turmoil and confusion, and when reviewing the recent inflection points in the DJIA in the chart below.
As you can see, plotting the planetary lines of the Cycle of Eight (CoE) is helpful, as the index has been trading between these lines, which have formed Support and Resistance for some time.
Foldback scenarios can sometimes deviate in price and time and may cease to function at some point, so be careful. The question is at what point, as many planets have been or just recently entered a Retrograde period.
When looking at the planet's average from Mercury to Pluto, here plotted in Red, based on the Cycle of Eight(CoE) or Circle of Eight, you can see what price levels in the past may match future price levels. If these price levels match with similar angles from important inflection points and the foldback, there may be relevant dates in the future where price and time (longitude of CoE) come together, and the foldback may end.
So, let’s look at how this might work out on the DJIA.