Get ready for a sleepy July and a turbulent August.
The Larry Williams Cycle Forecast Indicator sees the Dow Jones Industrial Average inching higher next month. Volatility’s expected to remain at current levels over that time, but then spike in the first half of August.
“It’s based on a combination of the three most consistent short-term cycles,” developer Larry Williams explained. “Averaged together and harmonically weighted correctly, they give a forecast 66 days into the future.”
The indicator shows a quiet period of drifting for most of that time. Williams suggested traders looking for movement could instead focus on a potential rebound in gold futures (@GC) over the next five weeks.
The Cycle Forecast can also be used in the shorter term with 30- or 60-minute candles. In that case it expects modest downside in S&P 500 futures (@ES) through tomorrow evening.
“This formula has been in TradeStation for years, and it does a pretty good job showing where the highs and lows will be,” Williams added. “It shows timing but not the levels or magnitude of moves.”
The Cycle Forecast is part of the Larry Williams Cycle Package.