S&P 500 has followed what I call a 12,6,2,5,1 Pattern. The price rallied at the beginning of 1982 and completed an N Rally after 12 years reaching a price target of 480. After that, it began an A Rally to reach a price target of 1531 in 6 years. This was followed by a corrective phase of 2 years. It was followed by an Inert Rally of 5 years (shown in blue) which drove the price back to where it fell from. After than began the steep correction of 1 year which dragged the price to 685. That marked the completion of my 12,6,2,5,1 pattern.
N Rally to 3126 (Oct 2020)
My 12,6,2,5,1 pattern took a new start at the beginning of Oct 2008. We are currently in an N Rally with a projected 355% price rally to reach a target of 3126 by Oct 2020. Theoretical Explanation: The market has heated up significantly. The introduction of cryptocurrencies has provided investors with new opportunities. A sluggish N Rally towards 2020 shows ample confidence in the market but stock market interest seems to be fading.
A Rally to 9952 (Oct 2026)
After the beginning of the N rally, the price will start to rally more aggressively to complete an A Rally by Oct 2026 with a 218% price surge to reach a target of 9952. Theoretical Explanation: By the end of the N Rally of 2020, many investors would have focused their attention on cryptocurrencies. Some blockchain projects would have become large corporations by now and would be a part of the stock market. Traditional investors will be able to invest in Bitcoin and other useful cryptocurrencies same as they would in Google, Exxon or Proctor and Gamble. Blockchain companies now being a part of the stock market will give S&P 500 another boost to reach a target of 9952 by Oct 2026.
Post N and A Rally Situation:
The market will heat up again as speculation makes prices of blockchain companies (now listed on NYSE) to skyrocket. This will result in another correction. The price will continue to follow the 12,6,2,5,1 pattern.
Important Observations:
12,6,2,5,1 One was about the Internet (Dot Com Boom)
12,6,2,5,1 Two is about the Blockchain (Crypto Boom)
We'll have to see what 12,6,2,5,1 Three is about.
N Rally to 3126 (Oct 2020)
My 12,6,2,5,1 pattern took a new start at the beginning of Oct 2008. We are currently in an N Rally with a projected 355% price rally to reach a target of 3126 by Oct 2020. Theoretical Explanation: The market has heated up significantly. The introduction of cryptocurrencies has provided investors with new opportunities. A sluggish N Rally towards 2020 shows ample confidence in the market but stock market interest seems to be fading.
A Rally to 9952 (Oct 2026)
After the beginning of the N rally, the price will start to rally more aggressively to complete an A Rally by Oct 2026 with a 218% price surge to reach a target of 9952. Theoretical Explanation: By the end of the N Rally of 2020, many investors would have focused their attention on cryptocurrencies. Some blockchain projects would have become large corporations by now and would be a part of the stock market. Traditional investors will be able to invest in Bitcoin and other useful cryptocurrencies same as they would in Google, Exxon or Proctor and Gamble. Blockchain companies now being a part of the stock market will give S&P 500 another boost to reach a target of 9952 by Oct 2026.
Post N and A Rally Situation:
The market will heat up again as speculation makes prices of blockchain companies (now listed on NYSE) to skyrocket. This will result in another correction. The price will continue to follow the 12,6,2,5,1 pattern.
Important Observations:
12,6,2,5,1 One was about the Internet (Dot Com Boom)
12,6,2,5,1 Two is about the Blockchain (Crypto Boom)
We'll have to see what 12,6,2,5,1 Three is about.
Trade closed manually