- When the radius of the bear decline (May 2008-March 2009) is projected forward in time horizontally, the Fibonacci harmonics are coincident with pivots. (see .38, .50, .62 & .78) Therefore, one can assume that the cycle energy that was present during the decline is still 'active' and predominant.
- The cycle influence is due to subside in mid September. (when the horizontal projection is equal in length to the bear market decline vector.)
- The predominant cycle is about to exert some significant downward pressure on the market since prices are approaching the ARC-RESISTANCE (blue arc)
- The market recovered approximately 61.8% of its decline (63.09%) which was in the vicinity of two important lows made before the 2008 top.(possible 4th waves of lesser degree) (purple horizontal lines)
- 10990.41 is the critical support if the possibility of a further bull stampede is viable--which is highly unlikely
- the correction was a volatile 78.6% retracement structure.
- the 10990.41 support is indicated on the graph. (last stand line)
- Tuesday's opening was a candlestick gap which blew through the 200 day ema with ease.
- At the same time prices re-entered the initial down channel formed from the April high.
These charts paint a very disconcerting picture of what could happen as we move towards autumn. (literally and figuratively)