Tuesday, August 21, 2012

Things are About to Get VERY INTERESTING

S&P 500

 The charts below show the myriad of harmonic relationships being made at today's high and subsequent reversal (Shooting Star). Yesterday's post made the observation that:
There are many cycles coming into play in the next 10 days--both short-term and long term--that could establish the character of the financial and metal markets for the next several months--or possibly years. If there was ever a time to be vigilant of market action: IT IS NOW!!!!!!
Today's action only serves to substantiate the gravitas of the current time window for many markets. Note the following observations:
  • The market rallied impressively from the opening only to hit resistance at 1426.68--mere points from the projected harmonic resistance mentioned in the August 13th update.
  • The 1426 level hit EXACTLY the downward side of the time price square formed by the March 3 - June 4th decline.
  • The 'epicenter' of the time-price square is 1390. This is a VERY--REPEAT--VERY critical level for the S&P. DO NOT IGNORE THIS LEVEL. If the market declines to the 1390 level and then forms a pivot, and then that pivot is subsequently broken to the downside, fasten your seatbelts because there will be a very high probability that things will become very NASTY!!!!!!
  • MARK SEPTEMBER 13th +/- a day in your trading journal--This could be an extremely significant day for the markets. In fact, the week of September 10-14 could be a historical time frame for markets, the economy, the election, the banking system, Europe and the world in general--including the notion of 'liberal democracy'.
The standard technical chart below indicates the potential of a DOUBLE TOP that is harmonically related to the March-June decline and subsequent rally.
  • The rally is 1.272 the duration of the decline. 1.272 is the square root of 1.618 (PHI)
  • A perfect 'shooting star' was formed due to today's reversal. This is a VERY reliable candlestick indicator.
This is a copy of the chart posted in the August 13th update.
  • 1428 was identified as a potential 'strange attractor'
  • 1390 is the level of the epicenter of the geometric chart shown at the top of this page. DO NOT IGNORE THE CRITICAL IMPORTANCE OF 1390. If you choose to--do so at your own peril!!!! I am being very serious about this.

 *Scroll through the previous updates of the last month to get a better idea of the importance of this time frame.

GOLD and SILVER 

If the equity markets are entering a stage of increased volatility and decline, the precious metals may reflect the seriousness of the situation. Watch thr levels indicated in the charts below. The meaning of the colour code on the right hand side of the chart should be self evident !!!!!

I believe that 'things' are going to become incredibly 'non-linear' between now and the U.S. 'election' and if you have an aversion to risk and danger now would be a good time to find a remote island to go to and chill.

2 comments:

Dolemite said...

You have been bringing the thunder lately my man... keep up the good work... Most entertaining and refreshing technicals site on the web

Fibocycle said...

Thank You very much....gratefully appreciated.