Stock Market Cycles Tipping The Balance From Euphoria To Complacency – Is Gold Setting Up For A Rally Above $2000 Again?

Gold has set up a very strong confluence pattern across multiple foreign currencies recently. This upside confluence pattern suggests that Gold has now moved into a much stronger bullish price phase compared to various currency pairs. This upside move in precious metals aligns very well with my broad market cycle phase research. I urge traders/investors to start paying attention as we transition into this new longer-term cycle phase.

Recently, my team and I published a series of articles related to these longer-term cycle phases and how they related to the current market trends.The biggest concept we want to highlight is that we’ve transitioned away from an Appreciation cycle phase and into the early stages of a Depreciation cycle phase. Often, near this type of transition, the global markets experience a unique type of Excess Phase Peak.This type of price pattern happens because traders/investors are slower to identify the end of a trend and often attempt to continue the Thrill/Euphoric phase of the previous market trend – until the markets prove them wrong.

You can review some of our most recent research posts about these topics here: US Dollar Breaks Below 90 – Continue To Confirm Depreciation Cycle Phase (May 23, 2021); Bitcoin Completes Phase #3 Of Excess Phase Top Pattern – What Next? (May 20, 2021) and; What To Expect – A Critical Breakout Warning For Gold, Silver & Miners Explained (May 18, 2021).

STOCK MARKET CYCLES

The custom graphic shown below highlights the phases of typical market trends through various stages of market trends. My team and I believe we have crossed the peak level (or are very near to that crossover point) and have begun to move into the Complacency and Anxiety phases of the market trend. As suggested, above, the psychological process for traders/investors at this stage is to hope and plan for the never-ending bullish price trend while the reality of the market trend suggests a transition has already started taking place and the market phase has shifted.

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