Brave-Butters-Kelley Index Cycle Forecasting Market Downturn

The chart included here (click to expand) is providing a stark warning to investors that although we likely have more room to run to the upside in the markets, a downturn is ahead (or sideways action at best).

This chart is a harmonic cycle (pink line) pulled from the Brave Butters Kelley index (you can read more about this index here). The black bars represent the Dow Jones Industrial Average (Ticker: DJI).

With the cycle pushed forward in time, we can see market pressure commencing Spring 2025 as a likely scenario.

This does not necessarily mean a large selloff – merely a high probability scenario for the markets coming under pressure with muted upside potential into 2027.

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