Shanghai Composite Index update - 20 September 2024
You will come across specific terms in these notes (FLD, VTL, and so on). Rather than explain them each time, you will find definitions here: guidance notes for Hurst cycles terminology.
Reversing up out of an 80 day cycle trough?
Our last note of 11 September was anticipating an 80 day cycle trough pretty much around now and this looks to be forming now. The theoretical 80 day cycle line is turning up and the 10 day VTL has just been crossed over by price. This means that the 20 day cycle trough must be in place, which at this stage of the longer cycles and by Hurst's principle of synchronicity means that all cycles up to 80 day magnitude must also have troughed.
The 20 day FLD is also now being tested for an upside breach, which will add a layer of confirmation. If the 20 day FLD crosses up (preferred view) then price is projected to rise through the 40 day FLD above, which in turn projects to at least 2,850 by the second week of October.
