In this article I'd like to explain what the 76.6-year cycle as the dominant rhythm at this time is predicting for the future of the stock indices (e.g. an intermediate-term market top around Friday 11/17 - Monday 11/20), targeting potential highs and lows with a very narrow time window.

In the past weeks the stock markets have traded against all odds, the chance of the observed market action has been, according to my calculations, only a tiny P<1-3%. Such a probability is defined as the most reliable technical, cyclical and astrological signals all failing simultaneously, resisting all patterns of the past. While a less extreme outlier of P<5-10% was already observed (in 2003 the last time) it's the first time to watch P<1-3% in real-time for me. This is a sign of extra-ordinary forces at work, my research in October has detected the reason on 3 different levels:

(1) on the lowest level it's the manipulations before the US elections, most likely through the Plunge Protection Team (PPT) established by Reagan (executive order 12631) on 3/18/1998, see also .

(2) on the middle level it's the 76.6-year cycle that is subject of this article because of its precise timing

(3) on the highest level it's the hyper-inflationary pressure

It crucial to consider that the higher levels are determining the lower levels, i.e. most "normal" cycles are distorted by manipulations while the trans-generational cycles of decades or centuries are rather immune. To put it that way, the highest cycles do include and prognosticate manipulations and event risks (like 9/11) instead of being distorted by them.

The 76.6-year cycle was first described in the free area in April, it connects market turning points over a time period of exactly 108 x 37 weeks. 108 is the most astrological of all numbers as the diameter of the sun is 108 times the diameter of the sun and the earth-sun distance is 108 times the diameter of the sun, and the 37 played a key role in the old esoteric rites in the ancient Egypt, their huge knowledge is still documented by the pyramids.

As already mentioned in April, the 76.6-year cycle is an inflation-adjusted cycle, the real US$ inflation is now - in contrast to the massaged official numbers - currently about 10%+ if you use the original formula of the 70ies before the cooking of the statistics started under "Mr. Watergate" Richard Nixon (see for instance http://www.shadowstats.com), that's why so far the May tops have been holding in the major indices (esp. in the benchmark S&P 500 and also in the MSCI World Index). Without doubt, the inflation of the world's reserve currency counts as it is soon "exported" to the rest of the world. The 2nd largest exchange in the world in Tokyo did even hold the top of the 2nd quarter on a nominal basis (but inflation is considerably lower in Japan). Probably the 76.6-year cycle is reflecting global equity markets with the S&P 500 (SPX) being the closest proxy of the actively traded indices but by no means a perfect representation. The MSCI World Index would be more appropriate but it is hardly (or not at all?) traded.

My newest research reveals that the significance of the 76.6-year cycle is far more than the initial prognosis for just one event.

Surprisingly, this cycle is still active and even dominating the indices, it also explains the market behavior of the past weeks.

The weirdest thing is that a cycle with a length of 27.927 days produces market turns almost to the day. From the high of the 37x108 week cycle on 5/8/06 the S&P 500 "accidentally" dropped 108 points (107.4 to be precise) in exactly 37 days (5/8/06-6/14/06) which is an incredible mirror of the underlying 37 x 108 matrix. And the market action off the previous high 1929 was precisely mirrored, too: the Dow Jones fell from the 76.6-year high on 9/3/1929 for 71 days to the annual low on 11/13/1929, and the S&P 500 also declined from the 5/8/06 high for exactly 71 days into the (inflation-adjusted) annual

low on 7/18/06... The odds that this is nothing but chance is close to zero.

There is some other interesting anecdotal evidence: the last planet (Pluto) was discovered on 2/18/1930, add 76.6 years and you arrive at September 2006. On 8/24/06 Pluto lost his position as a normal planet and is instead a dwarf planet now according to an IAU (International Astronomical Union) vote. On paper, that's the largest change in the solar system for 76.6 years. In astrology, nothing can be more important than the discovery of a new planet, the re-classification of a planet is in my opinion almost as important. It is very interesting to see that the 2 key events in astrology of the past 150 years are separated by about 37x108 weeks.

Last but not least another example: the most serious war between the 1970ies and 2003 was Gulf War I that started in January 1991, 76.6 years after the start of World War I.

Back to the market. I have found out that the basic structure of intermediate-term highs and lows has been observed for almost 2 years. Of the 9 intermediate-term reversals 6 (P=67%) came within just 0-4 calendar days after the projected date which is rather astonishing, and 8 (P=89%) within 11 days (not a single one was early).

Before I conducted the analysis I was already pretty sure that the turns would come late on average. In the subscriber area I have mentioned the "everything comes late" observation several times, it first occurred in late 2004 when the largest natural disaster in thousands of years (Tsunami) slowed down the earth rotation somewhat, and it did also delay some cycles temporarily or even permanently.

This is an analysis of the 9 intermediate-term highs and lows (date format: D.M.YYYY)

(1) high 4.6.1928 -> 3.1.2005: high 3.1.05 (deviation: 0 days!)

(2) low 18.6.1928 -> 17.1.2005: low 24.1.05 (deviation: +7 days)

(3) high 5.2.1929 -> 6.9.2005: high 9.9.05 (deviation: +3 days)

(4) low 16.2.1929 (double-bottom) -> 17.9.2005: double-bottom 13.10.05 (deviation: +26

days)

(5) low 26.3.1929 (double-bottom) -> 25.10.2005: double-bottom 27.10.05 (deviation: +2 days)

(6) high 5.4.1929 -> 3.12.2005: high 14.12.05 (deviation: +11 days)

(7) low 27.5.1929 -> 26.12.2005: low 30.12.05 (deviation: +4 days)

(8) high 3.9.1929 -> 4.4.2006: high 5.4.06 (deviation: +1 day) - but also high 5.5.06 (deviation: +29 days)

(9) low 13.11.1929 -> 14.6.2006: low 14.6.06 (deviation: 0 days!)

I have examined hundreds of cycles but none of them has correlated so closely with major highs and lows (even just with a small N=9). In comparison, the Bradley siderograph as a good indicator is defeated in all 3 quality criteria:

(1) polarity: able to predict if a turn is a high or a low? The Bradley and most other cycles fail but the 76.6-year is superior

(2) reliability: in the Bradley quite a lot of major turning points do not produce a response in the market so it is not very reliable

(3) accuracy: the time window of the Bradley is much larger, so the precision is considerably lower

future projection:

high 17.4.1930 -> 16.11.06: medium-term high 0-4 days afterwards?? (max. 4 weeks later)

low 24.6.1930 -> 23.1.2007: medium-term low 0-4 days afterwards?? (max. 4 weeks later)

high 10.9.1930 -> 11.4.2007: medium-term high 0-4 days afterwards?? (max. 4 weeks later)

low 16.12.1930 -> 17.7.2007: medium-term low 0-4 days afterwards?? (max. 4 weeks later)

high 24.2.1931 -> 25.9.2007: medium-term high 0-4 days afterwards?? (max. 4 weeks later)

low 2.6.1931 -> 1.1.2008: medium-term low 0-4 days afterwards?? (max. 4 weeks later)

high 27.6.1931 -> 26.1.2008: medium-term high 0-4 days afterwards?? (max. 4 weeks later)

low 5.1.1932 (double-bottom) -> 5.8.2008: medium-term low 0-4 days afterwards?? (max. 4 weeks later)

low 10.2.1932 (double-bottom) -> 10.9.2008: medium-term low 0-4 days afterwards?? (max. 4 weeks later)

high 8.3.1932 -> 7.10.2008: medium-term high 0-4 days afterwards?? (max. 4 weeks later)

bear market end 8.7.1932 -> 6.2.2009: medium-term low 0-4 days afterwards?? (max. 4 weeks later)

high 7.9.1932 -> 8.4.2009: medium-term high 0-4 days afterwards?? (max. 4 weeks later)

low 3.12.1932 -> medium-term low 4.7.2009: low 0-4 days afterwards?? (max. 4 weeks later)

So the immediate consequence is to expect a market top forming around Friday 11/17 or Monday 11/20 (with an unlikely extension into December). This statement is, however, somewhat modified by the proprietary Amanita pivots (reserved for subscribers).

The only problem is that this cycle will probably not function forever. How long is hard to tell, not likely longer than years, one has to monitor the development closely. Sometimes a cycle stops to work just in the moment it is discovered... Here the chart to illustrate the explanations:

Some additional notes on the different indices: the S&P 500 today is similar to the Dow in the early part of the 20th century, the primary benchmark for large caps. The Dow was a rather speculative index in 1929, resembling a combination of S&P 500 and Nasdaq 100 today. That's why in my opinion it's a major mistake to rely on the Dow to analyze "the" stock market as today the DJ consists only of the bluest blue chips of just one sector of the economy .