The 18-month
double stochastic shows the cycle bottoms of the 3 and 6-year cycles.
The 6-year cycle highs occurred at "A", "B" and probably at "C". Our expectation
is that prices will move sideways in a similar congestion pattern to the
one that occurred following the top at "A". The 4-year cycle bottoms since
1982 occurred at, or near, a 3 or 6-year cycle bottom. The October 1998
low would be the first low that did not occur at a 3 or 6-year cycle bottom,
indicating that perhaps the 4-year cycle may be extending in a similar
pattern to make a 1987 type low in March/April of 2000.
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