Are We in the Expansionary or Contractionary Cycle?

I posted an article about the economic cycles a few months ago. Personally, as I mentioned in my comments, I believed that we were in the midst of a minor correction in one of the mini cycles within the larger economic cycle. Based on a small pool of votes, the consensus belief was that we were in an economic contraction.

After Jerome Powells' recent press conference and the recent rally in most S&P sectors of the market, I am even more firm in my belief of the mini cycle contraction followed by a bull market continuation.

I should say that the market needs to make new 52-week highs, or this bullishness will look like a simple relief rally before the bear market takes back the reins.

I will not argue with the fact that interest rates are sky high and the lag effects take time to hit the economy. So we still may very well see interest rates impact the economy in the near future.

But as for right now, SPY is gapping up like crazy. This is what you see when bears turn bullish and exit or cover their shorts, making it look like a margin squeeze.

If you haven't checked out my previous post about the economic cycles then click the link below. You might catch some insight.

As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Give some of your investments time and know when to cut your losses. Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.