Tuesday, February 22, 2011

S&P 500 Symmetry

The following chart shows the symmetry in the trading pattern of the S&P 500.  Notice how this chart predicted the timing and shape of the April 2010 top, the timing of the May 2010 flashcrash, the bottoming pattern in Summer 2010 etc... 

Next, watch for a decline shown roughly with the green arrow since that is symmetrical to the trading patterns in 2007.  I expect to see a large and steep capitulation bottom this time as well. 

2-day Chart

If you follow the logic in the above chart, then the longer term $SPX chart below indicates a very large decline due to the symmetrical patterns.  

6-day Chart

I am watching $SPX 1305 short term for a possible bounce before further declines.

30min Chart


  1. love the blog! I was wondering if you could list the books you've read to learn this type of analysis - I saw your posting over at Xtrends and have since added you to my blogroll. Thanks for your effort and for sharing.

  2. Thank you.

    I have learned and honed these techniques with cycles over many years of trading. I'm not sure if there are any books that describe this type of analysis. There is an art and science to it, and fine tuning targets and timing takes constant effort and interpretation. The elasticity of the market does show us a map of what is coming next.

    Some of my methods are unorthodox. I follow many of the standard indicators as well, but there in value in taking a different approach. I use these cycles in all time frames, and they can be applied to any index, commodity, stock etc...

  3. Hi-may I ask what the S@P should close below to confirm the downtrend?? Thanks for all your work also! John

  4. Generally, it seems likely that the mkt needs to settle down and retrace back up here before further declines. This might be a several day process. S&P 1300 probably holds for the time being imo.

  5. Thank you! And by the way-thanks for your posts over at Xtrends-I know all there find them very helpful so please keep posting there. John