Below is a 2-hour chart of SPY, the S&P 500 SPDR. I am experimenting with this new chart style to add some color to my site. There is just too much gray. I used the 2-hour chart because it shows more details. Below the chart you can see the Detrended Price Oscillator (DPO). DPO is not designed to give momentum signals but rather to estimate cycle length. I am using DPO to "predict" the next bottom. Keep in mind that this is only an estimate.
The market moves in cycles in any timeframe. Cycle analysis can be helpful when trying to time the market especially for those who trade options. What we are trying to do is “predict” future market tops and bottoms based on past cycles. The chart below shows short term cycles for DIA. These cycles can be helpful to determine the next possible market low for DIA. This could possibly happen in early November. Right now it looks like the distribution phase has started which could last for a couple of weeks. The cycle length is roughly 46 days, you can see this number on the bottom of the chart above June 24 next to the cycle line.