Keystone's Eclipse Indicator

This esoteric signal is very interesting. The eclipse technique starts with identifying the eclipse dates and note where they cluster. Within that cluster area, markets are prone to large sell offs.  Once a center point is identified for the dates, a time period of one month before that date, and one month after that date are key, as shown by the small red boxes, and overall the entire box creates a zone for a potential large sell off. The market down moves tend to start at the first or second boxes rather than the middle area of the entire square.  Taking late last year as an example. The solar eclipse was 11/13/12 and lunar eclipse at 11/28/12.  Thus, 11/20/12 serves as a midpoint. Take one month before, and one month after and that creates the small red boxes, in this case, 10/20/12 and 12/20/12, give or take a week or two for each.  Markets topped in September-October last year at the first red box. In addition, the markets sold off the back half of December on the fiscal cliff fears, which occurred with the second small red box. The markets were stick-saved by the politicians to begin the year with the fiscal cliff resolution. So both of the dates were correct last Autumn. Typically, if a large sell off occurs from the first small red box, the second box becomes benign.

So there has been four eclipse windows over the last couple years. Each box has two targeted dates. The 5/15/11 date results in a sell off. The 7/11/11 date results in the large August waterfall crash so both dates in that window occurred. So the first eclipse window shown nailed two market tops.  Then the 11/3/11 date resulted in the November 2011 sell off. The second box at 1/3/12 was a non-event; markets were recovering and heading higher.  The second eclipse window nails another top with the 11/3/11 date.  Last year, the 4/27/12 date results in the May 2012 sell off. That must have taken all the energy since the 6/27/12 date did not cause a sell off, however, that is in the time frame where Draghi said he would support the euro by all means necessary, in July, that created the rally into the Fall. So the third eclipse window results in one correct market top call.  Last Autumn, the 10/20/12 date identified the market top, then, interestingly, the 12/20/12 called the top for the sell off in late December. So the fourth box results in both dates calling correct tops.

Thus, in the four eclipse windows over the last two years, two signal dates for each window, resulted in six of the eight as correct market top calls. Amazing for such an esoteric signal. Well, it is time to see what happens once again. The eclipse window in the right margin is now in play with the first date 4/10/13, now.  This window is special since there is an odd triple confluence this time around with three eclipse dates occurring over the next seven weeks; 4/25/13, 5/9/13 and 5/24/13. Taking a mid point date for the three dates yields a date of 5/10/13.  Thus, take one month before and one month after this date, which yields 4/10/13 and 6/10/13 as potential market tops where large sell offs may begin. The dates are +/- one or two weeks so the first small red box window is now through 4/24/13, and the second small red box is late May through 6/24/13. Interestingly, a major Bradley turn date occurs, which should be significant for this year, on 6/22/13, but Bradley turns do not forecast direction, only that a trend change or strong melt-up or melt-down move will occur.

So the markets sit in the first small red box right now, prime area for a potential significant market top anytime over the next two weeks. If a large sell off does not occur, then the period late May into late June will be the next target. The entire eclipse window is susceptible to a large market sell off, now through late June, over the next couple months, but the actual sell offs typically start from the dates provided above, the two small boxes within each window. The next two weeks will be interesting. For later in the year, the two key market top dates, give or take a week or two, are 9/26/13 and 11/26/13. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.