Good Evening!
Today was very exciting as the markets began to reckon with the stimulus package approved last night by the US House and Senate.
It is my opinion that a stimulus action can't change the fundamental harmonics of the market (like period and frequency)...
It can change the overall slope, and amplitude...
So what does this idea mean for the SP500?
Well, i am thinking that we are at the tail end of the big harmonic pattern shown in blue. We are way over bought, and peaked out on the MACD. This market needs to correct for stability.
So, my current thinking is that such a correction, like what triggered the covid crash in march, is well underway.
I have hypothesized that the amplitude of the crash may be reduced by the stimulus. Maybe we will only pull back the 50% Fib level instead of the 0.618 that is most likely after that harmonic pattern in blue.
I also hypothesize that the correction will happen roughly on schedule. As such the stimulus will not change the frequency or harmonic nature of it.
Excited to see if this plays out!
Good Luck!
Today was very exciting as the markets began to reckon with the stimulus package approved last night by the US House and Senate.
It is my opinion that a stimulus action can't change the fundamental harmonics of the market (like period and frequency)...
It can change the overall slope, and amplitude...
So what does this idea mean for the SP500?
Well, i am thinking that we are at the tail end of the big harmonic pattern shown in blue. We are way over bought, and peaked out on the MACD. This market needs to correct for stability.
So, my current thinking is that such a correction, like what triggered the covid crash in march, is well underway.
I have hypothesized that the amplitude of the crash may be reduced by the stimulus. Maybe we will only pull back the 50% Fib level instead of the 0.618 that is most likely after that harmonic pattern in blue.
I also hypothesize that the correction will happen roughly on schedule. As such the stimulus will not change the frequency or harmonic nature of it.
Excited to see if this plays out!
Good Luck!