Editor's (Leisa) note: This submission was originally posted here, and it was forwarded to Tim. Hope you find it interesting. There will be no sector report from me this week due to a computer change over.
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Saturday, April 17, 2010
Fractals
and Our Fates II
There are three charts in this post. The 1987 crash on weekly-bars, the
February 2007 drop on 2-day bars, and the most recent weeks in 30-minute
bars, respectively. The patterns exhibit nearly identical properties. I
have only notated the properties in the first chart but have included
the drawings in all three. You will first notice a 3-wave move, followed
by a consolidation phase of X length(time), boxed in teal. Then,
another three wave move of equal length followed by an extremely sharp
drop in prices. Support is found around the midpoint of wave 3 of the
move prior to the consolidation.
February 2007 drop on 2-day bars, and the most recent weeks in 30-minute
bars, respectively. The patterns exhibit nearly identical properties. I
have only notated the properties in the first chart but have included
the drawings in all three. You will first notice a 3-wave move, followed
by a consolidation phase of X length(time), boxed in teal. Then,
another three wave move of equal length followed by an extremely sharp
drop in prices. Support is found around the midpoint of wave 3 of the
move prior to the consolidation.
The
last two charts are of SPXEW instead of SPX because they exhibit the
properties clearer. The equivalent support level on SPX is 1160. If the
scrip follows, there will be a double bottom around this area, followed
by a quick recovery to new highs.
