Sunday, October 14, 2012

Map of a Harmonic Decline

S&P 500

The chart represents a possible scenario of the expected decline.
  • Assume Pt. X, where the Sept 14 high touches the line AE, is the intermediate cycle high.
  • Assume that the ensuing decline will be parallel to the previous decline AB
  • Therefore: XY // AB
  • 1395 is the center of XY. This point is around October 17-19th. A break below 1395 next week would suggest that the decline might become radically non-linear.

2 comments:

Chartrambler said...

"radically non-linear" is that Canadian understatement ? Lol

Fibocycle said...

perhaps a badly chosen euphemism...lol