The market formed a pivot on July 3, 1012 when the arc formed by AB reached its maximum horizontal distance from A. The market then declined and tested the major fan line BC which should act as primary support on any corrective decline. However the S&P exhibited weakness over the last several days by penetrating BC. Today's rally is attempting to break back above BC.
It is interesting that line AC (hypotenuse) intersects BC at approximately the same time and price as the intersection seen on the lower chart.
The lower chart shows two fan lines: The blue 45* line from the October 4, 2011 low--which is the major support line of the rally since October 4th. The red 60* line emanates from the June 4th low. These lines intersect on August 15, 2012 @ 1390-1393...which is approximately the same level as point 'C' on the upper chart.
It is quite possible that an important top may be seen between August 5th and August 16th.
Here are some astro dates to consider:
- Aug. 7: Venus enters Cancer
- Aug. 8: Mercury SD
- Aug. 9: Venus trine Neptune (oil)
- Aug. 13: Moon eclipses Venus
- Aug. 15: Venus opposed Pluto (gold)
- Aug 15: Mars conjunct Saturn (Currencies)
- Aug 16: Venus squared Uranus (STOCKS)
- Aug 17: New Moon
- Aug 18: Mercury trine Uranus (confusion and communication breakdown, EURO?)
Aug. 3 360 days from Aug. 9 2011 low.
Aug. 3 240 from Dec. 7 high
Aug. 3: 60 days from the June 4 high
Aug. 3: 45 days from the June 19 high
July 31: 120 days from April 2 high