Last week the FTSE dropped about 8% from the late November 2014 peak. We were expecting the market to fall, but the extent of the drop suggests that the British market is turning bearish ahead of the US markets, and warns that the longer cycles have turned.

In this episode I discuss how the stock markets expected move down into the 80-day cycle trough has progressed through the FLD's of different cycles which have provided a rough road-map for the move.

The big surprise was the FTSE, which has shown a much greater bearishness. In the second part of this week's podcast I discuss the implications of that.

In this episode I discuss some of the finer details of using Hurst Cycle tools to know when the markets have turned down into the 80-day cycle trough which we expect to form towards the end of December 2014.

I also discuss why the move down into the trough might not be very strong, and why the bounce out of the trough will probably offer a better trading opportunity.

I look at the S&P 500, DJIA, NASDAQ, DAX, FTSE and EURO STOXX

I take a look at the big picture for the S&P 500, and discuss the upcoming F-category short trade, which will take us into the 80-day cycle trough expected around the end of 2014.