Yesterday night before going to sleep, US market seemed to finish an ABC correction with its B wave 0.66 of C wave:
thereafter, a nice break-out followed
Macroscopically, US market looks like undergoing a series of similar expansion throughout last 2 decades:
monthly closing prices are pretty close to .618 (note this is a backward induction where its reciprocal is 1.618 a universal expansion rate). In general, it could be an expanding triangle or wedge that doom-day analysts may think there will be an End-of-the-world scenario (not End-of-Day... everything with a beginning has an end...) with a total market collapse to just a few thousand points (dji: 5847 if the same proportion is applied) ... Before that happens, looking at the fibo levels between 6470 && 18351 is more realistic at the moment, e.g. .382, .50, .618...
Looking at its 3-bar weekly swing charts, there are two swing bottoms (17038,15855) broken since the fall from end May 2015, but stopped above 15341. Therefore, a change in trend is confirmed.
Similar to hsi 's current situation, before the termination comes, I would expect a retracement to the north. 16933 is far too low to be the final point of this counter-wave.
From its 2-bar weekly swing chart, one of the possible targets could be 17466 which was a swing bottom in week of July 11th 2015.
From a geometric point of view, US market has also broken a weekly support trend line extrapolated from March 2009 and October 2011. Interestingly, when we apply a parallel trend line starting from the top in early Jan 2014, the market follows without violation.
If templates of Gartley pattern are applied, we could find some proportional relationships as shown in below charts:
If 15370 fits to .382, the market should follow with a retracement to the north and then try to find support at 14378 (0.50), 13440 (0.618) or 12280 (0.764) or even 1.000.
10404 is quite interesting since it is 102x102, a "square" number.
If 15370 fits to .50, the market should follow with a retracement to the north and then try to find support at 14718 (0.618) or 13859 (0.764) or even 1.000.
