The current smash down in US stock prices has been spectacular. Several support levels have been smashed, where will it end?
I remembered doing analysis after the August 2015 mini crash and discovered that from the high in May 2015 to the mini crash bottom in August the SPX a golden section was formed.
Prior to the SPX high of 2134 in May 2015 there was a significant correction bottom at SPX 1972. In August of 2015 when the SPX broke below 1972 it caused a crash. After the SPX bottom at 1872 on August 24th the correction level at 1972 was approximately at .618 of the entire decline from 2134 to 1872.
Perhaps the same phenomenon is happening in 2018. With the February 2018 SPX bottom as the nexus point.
The distance from the SPX all-time high to the February bottom is 408.22 x .618 = 252.27
The nexus 2532.69 - 252.27 = SPX 2280.42 as the bulls eye target for the bottom. Allow a leeway of plus or minus five SPX points.
On 12/26/18 if the SPX is still declining it would be in the 58th trading day since
the October 3rd high, also the DJIA all - time high.
The 1998 SPX decline was 58 trading days. 12/26/18 is within the two trading day window since the full moon.
Maybe the SPX will bottom at 2280 on 12/26/18.
Mark
I remembered doing analysis after the August 2015 mini crash and discovered that from the high in May 2015 to the mini crash bottom in August the SPX a golden section was formed.
Prior to the SPX high of 2134 in May 2015 there was a significant correction bottom at SPX 1972. In August of 2015 when the SPX broke below 1972 it caused a crash. After the SPX bottom at 1872 on August 24th the correction level at 1972 was approximately at .618 of the entire decline from 2134 to 1872.
Perhaps the same phenomenon is happening in 2018. With the February 2018 SPX bottom as the nexus point.
The distance from the SPX all-time high to the February bottom is 408.22 x .618 = 252.27
The nexus 2532.69 - 252.27 = SPX 2280.42 as the bulls eye target for the bottom. Allow a leeway of plus or minus five SPX points.
On 12/26/18 if the SPX is still declining it would be in the 58th trading day since
the October 3rd high, also the DJIA all - time high.
The 1998 SPX decline was 58 trading days. 12/26/18 is within the two trading day window since the full moon.
Maybe the SPX will bottom at 2280 on 12/26/18.
Mark