Keystone's Eclipse Indicator

There are many metaphysical phenomena that are not yet fully understood by science but if the concepts are proven why not follow the indicators and not become jaded from the basis? Keystone points out once per month when the full moon occurs since stocks are typically bullish (65% of the time) moving through the full moon (which is Tuesday by the way) and the new moon when stocks are typically negative. Another interesting indicator is the eclipse indicator which is a bearish market signal.

The general idea is to note where a cluster of eclipses occur and then take the midpoint. From that midpoint project one month prior and one month after where a +/- 2-week window occurs for a potential stock market top and the beginning of a selloff. Perhaps science will  understand one day why humans behave a particular way in relation to eclipses but it is what it is. Currently, 3/9/16 was a total solar eclipse and 3/23/16, this Wednesday, is a total lunar. A midpoint would be 3/16/16 so one month before is 2/16/16 and one month after is 4/16/16. The entire zone is susceptible to a market selloff (dark red box) but the specific dates, give or take that week or two, are the key areas where it is most likely for a market selloff to begin.

In February, last month, the window was open as per this eclipse indicator for a big selloff to begin but stocks had already been pounded and bottomed on 2/11/16 and were recovering. Thus, the window is open in April for stocks topping out and dramatically retreating. Time will tell.

The prior eclipse windows are shown on the chart. The red dots show when the indicator was dead-on in calling a market top and pull back. The August 2015 crash began virtually to the day on 8/20/16 that the eclipse indicator called out ahead of time. That is impressive and is why the indicator is worth watching. The blue dots show where stocks moved sideways and did not selloff. The green dots show where stocks were rallying during the key eclipse window. Also, if a selloff occurs during the first window in the box, that may use up the strength for the down move so the second window is typically inconsequential like in late 2014 and late last year.

The current set-up is interesting since the first eclipse selloff window was 2/16/16 give or take a week or two but this turned out to be a market bottom, thus, there is no energy used for a selloff in this current box as yet, in fact, stocks have rallied. Therefore, this behavior hints that the April window would lean more towards a selloff occurring in stocks. It will be fun to watch to see if the bear growls next month with a major pull back in equities.

Interestingly, the stock market topped out in October 2007 and the crash began about one year later in October 2008. Stocks topped out in May 2015 and about one year later places equities in this April-May time frame. Humorously, the 4/16/16 date for a major selloff to begin, give or take, is the day after tax returns are due to the IRS. Perhaps that will sadden traders. 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.