As I was looking at my charts back to just before the major tops in October 2007 I noticed something interesting in the German Dax Index. First I saw that the ongoing correction was very similar to the correction from January 27 2008 to May 25 2008 just to a higher degree.
I have labled the two possible fractals from 1 to 4, but to make them real fractals we need the ongoing correction to end soon and a big decline to emerge.
Whats even more interesting the minor fractal made an almost perfect 50% correction of the decline from 8,151.57 to 6,167.82. The exact 50% correction was at 7,159.70, but the real correction ended at 7,231.86, which was about 1% above the ideal correction-target.
Looking at the ongoing fractal of a higher degree the ideal 50% correction-target would be at 5,870.23 (the high untill now has been 5,898.99). If we where to see a correction 1% above the ideal correction-target we should see a move to 5,928.93 just 29.94 points from the high.
As I was messing around with the above mentioned fractals, I noticed two other possible fractals. This time twisted around, making the current possible-top building process the minor fractal in regards to the top-building process going on from March 11 2007 to January 27 2009 labled from 1 to 7.
If the fractal-call is correct the fractals will have to be identical calling for a top soon for a big and fast decline to 4,524.01, which marks the beginning of the start of the fractal.
Time will show if I have lost it totally - LOL.
I find this world of fractals very interesting, but they can be very hard to spot while going on.
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