Here is an interesting chart that shows the geometric relationship between an advance and subsequent corrective decline.
The May 1 - June 1 advance AB is depicted by the red square and circle.
The June 1 - June 19 decline BC is depicted by the blue square
- Note how BC is 1/2 of AB since 2(BC) touches the red circle. (yellow highlights)
- AB = BD: THe corrective square is 1/2 the advancing square.
- The colored grid on the right side of the chart indicates bullish and bearish levels.
- 81-82 to act as strong support.
- May 1 low + 90 days = July 30
- June 1 high + 60 days = July 31