I’m sure Friday’s disastrous decline and close at 1865 (down
1.25% on the day) has those same analysts that called the top for March 7 and
March 21 calling for the sky to fall again.
Similarly and based on Chris Carolan’s Spiral Calendar, I had March 30
for a top. But there wasn’t any
geometry. Just a projected pivot to
which I added the flourish of the type of price level (top) and a price level. It turned out a good pivot to the credit of SC but a bottom just
to embarrass me (which I richly deserved).
The sky may fall, but from a point 7% higher than from where SPX closed
Friday. And this time I’m claiming that time
AND price projection based geometry and math.
As an appetizer, please consider my essay on “Does the 1987
crash interval explain…..?” The link is
below. The 1987 crash price interval of
121.43 (the 1987 top minus the crash bottom) explains every price extreme since
1998. It explains the top and bottom of
the 1998 panic, the 2000 top, 2002 bottom, 2007 top, and 2009 bottom. The 2009 bottom plus 10 intervals of 121.43
gives you 1881, but 11 intervals gives you 2002. I stopped short of having the audacity of
proposing 2000. And, really, it was an
enticing but not convincing argument. The
link is here:
http://markettimeandpricetownhall.blogspot.com/2014/04/does-1987-crash-interval-explain-1998.htmlHow I arrived at the Easter weekend is unimportant. Use it as a premise to be interrogated. Here is a chart which displays only the first layer of geometry projecting Easter weekend and SPX 2000:
1,869 calendar days from the March 6, 2009 low of 666.79
arrives at Friday, April 18, 2014. Suspiciously
close to the 1,827 calendar days from the 2002 low to the 2007 high but set
that aside. Subdivide 1869 days based on
extreme highs and lows into 4 intervals of 416, 526, 409 and 518. The “mated” intervals of 526 and 416 produce
a quotient of 1.2644 or the 3rd root of 2. Ditto that for 518 divided by 409. Can that be a coincidence?
Ponder, for a moment, the 1869 calendar day interval. What if the high printed on Monday, April 21,
2014….substantially the “Easter weekend.”
The interval would be 1872 or EXACTLY 13 squares of 12 (13 X 12^2).
Let’s examine the simultaneous geometry of price and
time. Each of the dates of extreme highs
and lows used to define the 4 intervals above have an extreme price. Those prices, in turn, define price intervals
that have geometric proportions as did the time intervals:
Those price intervals,
as a proportion of the total interval of 1869, can be reassembled to exhibit
Phi proportions of .6 and.4 as shown above.
The 1st and 3rd price interval combined are 40.56%
of the total price interval, and the 2nd and 4th price
intervals combined are 59.44% of the total price interval.
Now let's really seal the deal. What is delta time of 1,869 divided by delta price of 1,322? You do the math. Can't make that up. To a lesser state of wonderment, divide the projected ending price of 1989 by the delta price of 1322.....it's 1.5, the 4th Fibonacci number divided by the 3rd and a key player in planar geometry.
Now let's really seal the deal. What is delta time of 1,869 divided by delta price of 1,322? You do the math. Can't make that up. To a lesser state of wonderment, divide the projected ending price of 1989 by the delta price of 1322.....it's 1.5, the 4th Fibonacci number divided by the 3rd and a key player in planar geometry.
There’s so much more but adding layers of geometry in SPX will only
add color to the structure exhibited above.
More significantly, however, NDX exhibits similar geometric time and price
proportions that support Easter weekend.
This is very significant because NDX bottomed November 21, 2008, more
than 3 months before SPX. Here’s a chart
with interval subdivisions, again, based on extreme price levels:
As with SPX, those 4 time intervals in NDX define related
price intervals. And those price
intervals can be recombined to perfectly subdivide the 2,904 point increase
from 2008 to 2014 into two sections of 50% (reciprocal of the 3rd Fibonacci number):
Here’s one for further reflection. Take the 1,974 calendar day interval in NDX
and section it by the inverse of Phi (1,974 X .618 = 1,219 days) and you get
1,219 days. Measure 1,219 days from the
November 21, 2008 low and you are very close to the April 3, 2012 high at 2795. [It’s actually 1,229 calendar days.] That price is 61.8% of the total price
interval from the 2008 low of 1019 and the projected Easter high of 3,923:
Summing it up and
adding some poetry, SPX 2000 on Easter weekend. A two-week 7% bull exhaustion rally. NDX 3,923 or almost 11% from the current
3,539 close on Friday. It could be SPX
1,989 and NDX 3,986….Gann’s concept of “lost motion.” But boil it down to the title of this essay….in
substance, SPX 2000.
After that, well, see my essays that studied the early days
after the 2000 and 2007 tops (the ‘first wave’ down). I’m tempted to say the sky will fall but I do
not have any geometry or math to guide me as yet. So, for the moment, let’s leave it with Gann’s
caution to look for a change in trend at holidays.
Jim Ross
Sunday, April 6, 2014
After discovering much of the above geometry last night I was near sleepless and began writing the essay very early this morning. I did not want to intertwine thoughts of other than geometry in the above post, but it is very difficult to disjoin the awe which I felt in contemplating the above geometry and proposals. As a result, I missed Sunday services this morning. I am not a ‘good’ Christian and for most of my life, I was not a Christian. Not a denier, simply not one that contemplated other than what ‘I’ was doing at the time.
ReplyDeleteSuffice it to say, with the six-six-six number floating around so prominently, I’m filling my morning with some study of Revelation. ……I’m relieved to see there were 4 creatures rather than 3 (my proposal is 3 price intervals of 666 to reach 2000). A ‘good’ and studied Christian student would have known the answer. At least I was adequately exposed to have been able to pose the question.
I think Gann was onto something when he said ‘read the Bible 3 times.’
Jim