Market cycle analysis uses repeating rhythmic patterns and multi-timeframe indicators to predict market movements; based on current valuations (Buffett indicator at 224%, Case Shiller at 40.7%), the S&P 500 is projected to reach a high of 7,300-7,450 in Q1-Q2 2026, with a low around 5,800, and potential correction periods in March-April and May-June.
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Deep Dive
Replay: Slim’s Year End Stock Market Predictions for 2026Added:
So, I have this set up in a way that we're looking at the monthly over here and the weekly over here. On the bottom here, I have the reversal scout showing you in this uh uh kind of a shaded type uh look. And then the reversal scout is also up here uh on the weekly chart. And I have the slim ribbon and the reversal scout up here on the this is the monthly, sorry, and this is the weekly.
So, let's blow up the weekly. And I've got a lot of notes to myself in here, but what I want you to see is uh this nice cyclical rhythmic action looking back here. Go. We're looking back here to 1996. And you can see these repeating rhythms, these patterns uh in the market. And those, of course, on the bottom, the cycle brackets are just guides for us. They help us look for how the actual energies in the market uh occur based on what the normal wavelengths are. And that's what's on the bottom. There is a repeating wavelength. It's broken down into smaller wavelengths. And we use that for our analysis and add in the shapes of what we look at. In other words, what's the construction or the structure of each of the cycles and how do they do around support and resistances. So if I just look at these last two cycles right in here, you can see that this uh cycle was where the half cycle came in a little early there. the cycle was a little bit longer. This is where that tariff panic came in right over there, which was a little bit early, but it's plus or minus a few bars. And that's what we look for is the shape. Of course, this was a very bullish shape that you see right over here. And even those minor cycles took up a very bullish shape. And where are we right now? So, let's take a look here. Now, I've got these notes to my members, notes to myself uh uh built into this and uh that is comes from all of this multiple time frame analysis that I'm looking at. First of all, in line with what I said before, the uh the Buffett indicator is 224%. That's the market cap, the GDP, the case Schiller at about 40.7%.
These are historic numbers. the valuations are extraordinarily high. It would be, you know, a lie if I didn't tell you that I have a bias based on that, that there's some limitation to how much the market can make on the upside. And that has me sensing based on 51 years at this that when the market has corrective periods, they could be sharp. It could be nerve-wracking when they go into corrections. The question is, how do we time them or what does it look look like? So, I'm just going to move this out of the way here and then I'll get back to what that says. So, right now when I'm looking at the monthly chart, I'm looking at this period right in here where you have the quarter cycle of the intermediate half cycle right over there rising going up and you have the momentum in here rising going up as you see in the reversal scalp. This is a very bullish condition.
It's the same thing. we have an alignment uh where this is green uh or bullish momentum that's the longerterm holder still adding to positions point you know pointing to the upside and that has me looking at well two things uh this resistance area right over here which we'll call it 6890ish maybe 60 uh maybe uh 6900 somewhere around there and then this next fib extension that's the minor 100% up at 7440. Let's say right around there. So that looks to me like that is the upside projection for this period right in here. So we're already at a really had, you know, a big gain and a huge valuations in here. I have a very hard time believing that the market will make it above these levels. The 7440 level, I think that's what that is.
Yeah, 7450 as the peak for this period and potentially the peak for the year. Now, there are periods where there's likely to be uh volatility on the downside or corrective periods. And I'm going to go over to the weekly chart to look for those as we look here. So, this is the weekly chart and you could see this dominant cycle right over here and where it made its low right there a little bit early. And I have this broken up. These vertical cycle timing lines are showing you where these minor thirds aligned right in here. And we are now in this rising minor third. And there's a period right in here that this is likely to come down into March. And then there's another period in here where it's likely to rise and then come down into May, June. So I have two periods in here that I'm looking at that could have sizable corrections.
Now, we're in this range and you can see where this low was made right over here at 652192.
I believe that if this low gets broken or when it gets broken this year, that will set up a warning of an intermediate top. And if that's the case, you could see sizable declines for a good portion of the year after that. this times out into August. In the meantime, the pattern is still positive and we're still in this range. And based on everything I'm looking at, it's probable the range is going to break out on the upside first. So that says to me that um the looking at this right over here that you know that level right there is around 7320.
You can see that right there. So if I go back right over here and look at the message that I put right over here, the ideal phasing as we come into 2026 has configurations is positive. All momentum is positive, but there's likely volatility in the year ahead. And I'm going to show you the VIX chart coming up in a little bit after I look at the other indexes. So that's a look at the um let me just get this back in line.
That's a a look at the uh weekly and the daily. And what that means is I'm sorry, the monthly and the weekly. And what that means is that there's a first pullback likely into March, April where there's a weekly trough due. There's a second pullback due into May, June.
Another weekly trough down there. I'm calling for the high for the year somewhere between 7,300 and 7450 in Q1 or Q2.
and then a low for the year around 5800.
Now, what I did was extrapolate uh about a halfway correction down to some support, which would be about 21% down from the peak. So, nobody is I'm probably the only analyst out there that's looking for anything like this.
You know, a lot of them are looking for 8,000. One guy out there who's been pretty good is looking for 9500.
I those are so absurd I can't even you know fathom those uh 737400 is possible in my mind even with these extreme valuations.
This is a cycle analysis workshop special. You got an idea if you watch this video of the amazing style that we have for our analysis and how our four analysts also uh all use this approach all with their own variations of course.
What's this workshop? Well, it includes my work uh uh the slims method of analysis. I developed this over more than 50 years. I pioneered this new approach to chart analysis, a structured process for understanding market cycles.
And this uh if you sign up for this, you get lifetime online uh access. No special platform required. Access anytime from any device. You will definitely experience better directional decisions and learn to project in time and price. That's so different from most styles of analysis. You get 26 online video modules plus many of our tools for text videos included in that. I mean, there's just days and weeks of study that you can uh do there. It's just amazing. It took me two years to write that and six months to produce it. There is so much that we've added to it also and there's bonus items in there. You get the dedicated Slim AI coach and it can really help you uh with the just amazing abilities that it has to explain every single of these modules uh in this uh workshop to you. Um it it it engages with you in such a personal way. Uh you can ask it to quiz you. There's so much that it can help you with. That's the uh Slim AI coach that's right there embedded on those pages and uh you'll get all of our addendums that we have in there uh that we've recorded since the original release. You can go to asklim.com to purchase that. Now, this is an amazing offer. You save $400. It's just $8.97 now instead of $13.97.
And our level two to four members save an extra $100. So, if you're not a member, become a level two to four member and then uh write to mattas asklim.com and ask him for that special discount link that takes it only down to $797.
What an amazing you could easily for this type of a workshop pay thousands and thousands of dollars and uh you will just never look at charting the same way uh when you uh uh sign up and learn this and spend the time. Go to our website top right side you could see right up over there asklim.com click on that gives you more information and the sign up link is there and remember if you're level two to4 write to Matt mattaslim.com ask him for the special link and you will save uh another one of our uh just amazing um $100 offers and also if you're a very firsttime member uh and you've never been around uh ask man about our special level four offering that you see right up over there. Um that's imagine getting that great deal, becoming a level four member and then saving the extra $100 on the workshop.
What a fantastic offering. Ask Slim Cycle analysis workshop. Now's the time.
Click on that and learn more.
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