The four phases of the cycle

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The cyclical position of the stock markets, the equity baskets and commodities are defined according to the COMPOSITE MOMENTUM position on to the chart above, which divides the cyclical position of the market in its four possible phases:

UP (Up) = indicator rising and below zero> ACCUMULATION> From the final phase of the bear market to the beginning of the Bull Market
ADVANCING (Adv) = indicator rising and above zero> RISING> From the development phase to the top phase of the Bull Market
DOWN (Dn) = indicator falling and above zero> DISTRIBUTION> From the top position of the Bull Market to the whole Bear Market Development
TERMINATING (Tm) = indicator falling and below zero> FALL> From the development phase to the terminal phase (bottom) of the Bear

Applying the examination of the cyclical position to homogeneous sets and selected equity indices, fixed income and commodities you can draw valuable information about the situation and the potential of various markets.