S&P Rally in January; 2025-2027 Forecast

0:00 the S&P Market did come down as expected into Christmas and it's now December 23rd we're expecting lower prices potentially into early January January 5th comes up as a potential low point and then again we expect a rally a strong rally potentially in January ending between the 21st and the 27th of January okay so that's the next storyline however one of the reasons we think the market May go lower is that the momentum is still fairly negative our momentum balance technique is still calling for potentially lower lows on this swing and also the Spy if you look closely at it it has a fairly significant Gap that hasn't been filled and since it's so

0:46 close it might as well go there and get it so there's potentially another couple hundred S&P points that could happen before the low and then then we could shoot up again okay all right so that's the shortterm story now it's almost the beginning of the New Year and this is going to be the time that we put forward our yearly forecast which by the way we just wrote an article for Traders World it'll be coming out I think on the 6th or 7th of January and um you can find our printed version of the yearly forecast in there but to make it simple basically we're looking for the composite of this chart you can see three Cycles one is the seven-year cycle which has been repeating at a 90 85%

1:31 correlation for the last 2 and 1 half years the second one in there is the 88-year cycle which has been repeating at a 94% correlation for the last 2 and a half years and the third cycle is the uh 60-year cycle which has been rece repeating at about a 91% correlation rate for again for the last two and a half years and when you add the three together you get a composite wave which looks like this you see it and basically it's the next 2 and 1/2 years projected forward in the pink long in the pink curve going uh into the future and it says basically the market is kind of choppy to down for the first four to five months of this year has a rally over the summer has a bad fourth

2:19 quarter potentially a uh very severe decline for a few months from August until December and then it goes sideways from most of 2026 has a final bottom March of 2027 and then that is the end of our bare Market followed by a continued upside into 2028 and even 2029 so we're not bearish super bearish but we could see a 30 to 40% correction that isn't ready to start yet more than likely it's ready to start around August of 2025 we're looking for around 49,000 on the Dow right now we're in the 42,000 area and and which could translate into a fairly High number on the S&P that's about another 15%

3:05 potentially on the upside for the S&P as well and what we see coming forward is a fairly significant reversal started on December 5th and it's not the beginning of a bare Market but it could have weakness that is pushing the market down into April we mentioned this in several videos now we're looking for a down up a down in December up in January down in February a high in March and another low in April early May okay and that'll be uh we'll elaborate further on that in the future but the next four to six months the market could be either down or sideways and then we expect a very strong rally that should take the market

3:50 up to new all-time Highs but it should happen in July and August ending in August of 2025 and that August 2025 Point lines up with several major Cycles this information of course is primarily for swing Traders all right that's the big big picture on the super short term we look at one month variance it's basically a uh 26 and A2 day cycle and multiples of that that have been repeating and you can see in this chart that basically two months ago and four months ago um have been repeating nicely in the forecasted the FED meeting result would be very bearish because it came in within a few hours of what happened uh four months

4:37 ago and eight months ago which is double four months ago it also calls for a very similar storyline which calls for a second low potentially ear early January followed by a decent rally in January potentially retesting or possibly making new highs and then February could be bad two of the Cycles we were looking at one is the 155 week cycle and that topped out in December of 2024 and it's what's coming is the the decline of that uh cycle and then another cycle that's been up and is still up is 188 we cycle and that one tops out August 5th of

5:22 2025 so along with the very long-term Cycles the 155 we and 188 we cycle on the middle uh on the intermediate scale level we have been looking at the 147 we cycle repeating and it has been very very accurate and based upon the 147 week cycle you can see we're looking at a December decline a January rally decline into April and also the 54 we and multiples of 54 week which have been working working meaning repeating upside down and that's been going on for months as well it turns out to be producing the same forecast indicating that a April or May would be a low in

6:08 2025 and then we could resume our uptrend and when the two cycles agree with each other we have a more reliable potential pivot date going into the Future Okay and the third one we're looking at is 171 trading days which we talked about in the last video and we isolated four different occurrences it's roughly a 4 month 85 trading days down 85 trading days up it's very reliable and it's been working beautifully and it's pretty much in agreement that the market is going to go down in February up in March and then have a low in April which has been the Habit the last four or five times that this has occurred over several years all right so three different Cycles kind of agreeing with

6:53 each other fairly well is enough to produce uh reasonably high confidence and high prob probability forecast that's what we've been viewing on the intermediate term scale