The SPX decline from the September 2018 all -time high is referred to as a Combination wave.
Expanding Flat followed by a Horizontal Triangle and completing with a Zig Zag.
I've studied this structure down to the one minute chart scale and I'm very confident that its correct.
In particular Minor wave "C" of the Zig Zag counts as a five wave structure with a Fibonacci relationship between Minute wave "i" and Minute wave "v".
Minute wave "v" is .382 of Minute wave "i".
My post on 12/19/18 noted a Fibonacci 55 trading day time cycle due on 12/20/18. The subsequent lower low on 12/21/18 has invalidated this time cycle, with specific
Fibonacci sequence numbers it must be exact. 12/21/18 is 56 trading days and 56 is not a Fibonacci sequence number.
However there could be another time cycle at work. 12/21/18 is Winter Solstice AND 12/22/18 is a Full moon.
When using lunar analysis I allow plus or minus two trading days from the New/Full moon as a trading window.
12/22/18 is a Saturday the trading window extends from 12/20/18 to 12/26/18.
You can laugh at this indicator at your own expense. The lunar cycle has been used by traders for several decades in many markets.
This stuff works! There have been seven effective Full moon buy signals in 2018.
Note the daily Stochastic like the weekly is very oversold. Reading is currently only "5". The only other time Stochastics got this low was in November which was also on a effective full moon buy signal. This rally while later erased was big enough for a decent long profit,or the signal could have been used by the bears to cover shorts and lock in gains.
Even if I'm completely wrong about a significant SPX bottom in late December, the bears could lock in some gains and avoid the stress of a bear market rally lasting at least several days. Then reposition shorts at a higher level.
All of this evidence combined with the extremely high Put/Call ratio indicates a powerful rally could begin very soon.
Mark
Expanding Flat followed by a Horizontal Triangle and completing with a Zig Zag.
I've studied this structure down to the one minute chart scale and I'm very confident that its correct.
In particular Minor wave "C" of the Zig Zag counts as a five wave structure with a Fibonacci relationship between Minute wave "i" and Minute wave "v".
Minute wave "v" is .382 of Minute wave "i".
My post on 12/19/18 noted a Fibonacci 55 trading day time cycle due on 12/20/18. The subsequent lower low on 12/21/18 has invalidated this time cycle, with specific
Fibonacci sequence numbers it must be exact. 12/21/18 is 56 trading days and 56 is not a Fibonacci sequence number.
However there could be another time cycle at work. 12/21/18 is Winter Solstice AND 12/22/18 is a Full moon.
When using lunar analysis I allow plus or minus two trading days from the New/Full moon as a trading window.
12/22/18 is a Saturday the trading window extends from 12/20/18 to 12/26/18.
You can laugh at this indicator at your own expense. The lunar cycle has been used by traders for several decades in many markets.
This stuff works! There have been seven effective Full moon buy signals in 2018.
Note the daily Stochastic like the weekly is very oversold. Reading is currently only "5". The only other time Stochastics got this low was in November which was also on a effective full moon buy signal. This rally while later erased was big enough for a decent long profit,or the signal could have been used by the bears to cover shorts and lock in gains.
Even if I'm completely wrong about a significant SPX bottom in late December, the bears could lock in some gains and avoid the stress of a bear market rally lasting at least several days. Then reposition shorts at a higher level.
All of this evidence combined with the extremely high Put/Call ratio indicates a powerful rally could begin very soon.
Mark