During the weekend I was playing around with some different ideas I had for the long term view of the Dow Jones Industrial Index and stumbled over some very interesting Fibonacci relationships.Beginning at the 1932 bottom the first important high was in 1937 (1932 + Fibo 5), but I found some much more interesting relationships:
1932 + 34 years = 1966 (important top)
1966 + 21 years = 1987 (less important top)
1987 + 13 years = 2000 (important top for Nasdaq)
2000 + 8 years = 2008 (until now the all time high)
2008 + 5 years = 2013 possibly new all time high near 16.450 and wave "D" of the broadening top formation calling for a big decline into 2015 - 2016 with a possible very important low in 2016.
I tried to find a similar relationship with the bottoms, but I haven't found anything as nice a the relationships above, but if I find something I of cause will let you know about my findings.
I never found out this relationship, however, my analysis says similar story - Top formation in 2013/2014 then suuuupppp big slash bearish in 2014-2016 - I am new to EWP and hence I always kept this to myself but looking at your chart, I am enforced to comment.
ReplyDeleteApurv
HI,EUR/USD analysis almost perfect, Thanks, Ruben
ReplyDeleteHi, but the high was in 2007 not in 2008 !?
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ReplyDeleteSomeone found a nice relationship in the S&P recently"
ReplyDeleteI have been looking at the eight cycles of mini rallies and mini corrections we have had in the S&P 500 for the past year or so (eight cycles from 2012-11-16 through 2014-02-05). I tallied up the total days (305) and was calculating the average days per rally (25.8) and the average days per decline (12.4). I know, pretty boring so far.
However, I then decided to calculate the ratio of each decline period to the preceding rally period to find the average decline ratio: 0.56875. I know, still pretty boring.
Finally, I decided to do the same thing to calculate the advance ratio, dividing each rally period by the preceding decline period.
Ding! ding! ding! ding! ding!
The answer: 3.14.