Showing posts with label 255-Day Cycle. Show all posts
Showing posts with label 255-Day Cycle. Show all posts

Thursday, September 25, 2025

US Stock Market Outlook for Q4 2025 | Larry Williams

Current market cycles suggest near-term weakness across the NASDAQ, S&P 500, and Dow Jones. The same pattern that accurately forecasted last April’s rally now points to a pullback. 
 
» Expect weakness in Bitcoin, gold, and stocks in the near term. Not a bear market yet, 
but caution is warranted. Cycles and fundamentals together suggest a pullback is ahead. «
 
The 255-day S&P cycle, which has consistently identified past buy and sell points, indicates we are in a weak phase lasting into spring 2026, with the next major buying opportunity around the turn of the year.
 
 » The S&P has a 255-day cycle. Historically, it has nailed buy and sell points 
remarkably well. Right now, we are in the weak part of that cycle. «

This weakness is not expected to trigger a crash, but rather a corrective phase after a strong run, followed by a probable year-end rally. The 2025 forecast of a bullish trend and March buying opportunity proved accurate; the 2026 outlook projects early weakness, then a recovery.

Fundamentally, stocks are overvalued relative to bonds and gold, historically a precursor to declines. This reinforces caution, even without technical confirmation. 
 
» Yes, maybe some weakness—but nothing like 1929 or 1970. 
So, I wouldn’t jump to Dalio’s conclusions. «

Ray Dalio has warned of an 80-year cycle implying severe turmoil. However, analysis of past instances (1863, 1946) shows mostly sideways markets rather than major collapses. The cycle may suggest weakness but not systemic crisis.

In summary
: expect a corrective phase in equities, with parallel declines in gold and Bitcoin, but no imminent bear market. Year-end rally potential remains, and cycles continue to provide reliable foresight.
 17:19 - NASDAQ, S&P 500, Dow Jones  
20:33 - Stocks Overvalued and 80 Year Cycle?
 
The 13-Week Cycle in Stocks.
 
See also: