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The weekly S&P 500 cycle has been accurate in all five buy signals and in four of five sell signals over the last year. The cycle gives a sell signal in mid-month. We are currently in the weaker seasonal ‘sell-in-May period’, and the other longer-term cycles have peaked. Investors are advised to take this sell signal seriously.
S&P Weekly Cycle
The accurate weekly cycle is topping at mid-month.
PayPal reports earnings this week. The daily cycle has topped, and we can see that the weekly cycle will peak as trading opens in the new week. The daily graph shows falling relative strength and has a bearish tone. The share price may fall closer to the prior $68 low.
PayPal Weekly Cycle
The weekly cycle has peaked and is due to pull the stock down.
PayPal Daily Graph
This is a weak stock, and due to get weaker.
International Flavors and Fragrances also reports this week into a cycle headwind. Eight of the last nine such cycle sell signals have been successful. Technically, the stock is weak. Relative strength has been falling. The shares could test the $93.5-$94.0 level on the downside.
International Flavors and Fragrances Weekly Cycle
This cycle is due to pull the stock down further.
International Flavors and Fragrances Weekly Graph
These shares are likely to fall when earnings are announced.
