Friday's rally pushed the geometry of time and price into perfect alignment. As a result, the Symmetry Line is confirmed, and the rally since October is over.
Next week, a decline to the 1289 to 1295 area is indicated by the symmetry. After that, a sharp bounce (lower high) is anticipated to test the upper red fork line at point 4 later in February. Point 4 to point 5 in the symmetry is the Crash #1 of 2012.
The May 2011 high was 1370, and SPX fell to the Oct low at 1074. That is a 296 point drop. The Friday, Feb 3rd high at 1345 SPX minus 296 points equals 1049 SPX.
Therefore, the calculated target for Crash #1 of 2012 is 1049 SPX.
Compared to the 2-week late July/Aug Crash in summer of 2011, my work indicates that Crash #1 of 2012 is comparatively larger in price, but with half the velocity in time as summer 2011.
Crash #1 of 2012 is expected to take 4 weeks to plunge from late February to a bottom at the 1049 target in the last week of March.
A bullish wedge pattern appears complete for TVIX as of Friday, with a minimum of $21 to maximum of $23 targeted for next week.
The TVIX target is expected with SPX declining from point 2 to point 3.