Cycle analysis can be made using charts. However, the distinctive cycles in pattern can be masked by more powerful factors (fundamental data, bad/good news, global events, etc.) that over-drive the market time-from-time. Therefore, a special software can be very useful for extracting hidden cycles.
The chart below shows S&P-500 index forecast for April-May and summer months of 2012. The calculation has been performed using Stock Market Predictor SMAP-3. According to this forecast the stock market might continue its uptrend until the end of May, then have some correction in June and top in July.
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They are cheeking the temperature between summer and winter.As in this time the weather changes lot.And after a long time it comes to their previous form.
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Graph shows positive results. But let's not rely on this. There are more thing to consider. Like those mentioned in the video of Ed Butowsky about the Fed survey. Check the video here.
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