|2018.09.07 XOI.X Cycle Model Chart|
The model stubbornly suggests higher prices for the index going forward into the Fall and Winter. The level of divergence between actual and predicted values for the index exceed those observed on 2008.10.10, which were resolved in the next few weeks according to the prediction. That said, there is also the possibility that the model is failing. Remember that all models are wrong, but some are useful. Previous runs of this model are shown below and here.
|2018.07.12 XOI.X Cycle Model Chart|
The medium term model output shown here also suggests higher prices for USO.