As for my suggestion that we CIRCLE THE WAGONS, let's look at the and see if they fit important event dates.
The Fib .500 circle (mid June 2015) warned of an reversal of the Ki Jen-Sen baseline and the (thick red) conversion line.
Fib 1.272 circle (late August 2015) warned of a SEVERE DROP IN IYT (the Ki Jen-Sen baseline and the (thick red) conversion line TANKED), the IYT fed in the downtrend. Fib 1.618 circle (September of 2015) was coincident with the S&P 500 and IYT bottoming process. This circle is between the two intermediate bottoms.
Fib 2.618 CLEARLY CALLED THE MARKET AND IYT TOP in December of 2015.
Fib 3.618 CLEARLY CALLED THE S&P 500 AND IYT BOTTOMS IN February of 2016.
NOW WE ARE AT FIBONACCI 4.618. DO YOU REALLY THINK THE MARKETS ARE GOING TO ROCKET HIGHER? The evidence suggests a sharp downturn.
Let me put (no pun intended) it this way: Would you pay $95 per pound for ground chuck?
Then why would anyone buy the S&P 500 (or the transports) at a P/E of almost 25 times anticipated earnings?
I have CIRCLED THE WAGONS and anticipate much lower prices. If this happens, I will treat myself to a burger.
I will close with a quote from Spenser Tracy: “There were times my pants were so thin I could sit on a dime and tell if it was heads or tails”
My advice: Trade wisely and don't chase. I hope this has been helpful and informative. May all of your trades go well. Don.