Decline could run into January
|This week the bulls cheered on Tuesday, with a big rally. Then prices hit the top of a trading channel, making an edge in the plasma chart. After making 3 lower highs prices dropped sharply on Thursday. This and more is shown on the chart on the AUX page.
The chart shows the Fireball top starting on 9/21/2018, on the fall equinox, to 10/3/2018.Trendlines drawn down from the Fireball energy center show the boundaries of a downward energy blast.
One week after the end of the Fireball, on the 10th, prices broke down sharply in a chaotic break. Thisdrop extended the next two day into the low marked A or 1. In 15 point quantums, this was a drop of 225 points, 5/8 of a circle.
That was followed by price churning up and down until the rally on Tuesday. Then all seemed well. The declien was stopped. The bulls were back.
Trouble appeared on Wednesday, as prices dropped, then ralled to a lower high. Another lower high Thursday morning was a precursor to the sharp drop later in the day.
The rally to point B or 2 was 105 points. A simple ABC projection where C=A suggests a target of 2595.
One means of tracking moves is to use a rainbow of EXMAs. On this chart I use 1.5, 3, 6, 12, and 24 day EXMA. These EXMAs are another form of Gerald Appel's MACD - Moving AverageConvergence Divergence. From the Fireball to point A, the averages diverged. Running up to point B, they converged. Then as the rally failed and prices turned down, they divereged again.
Significantly, the B rally did not touch the 12 day EXMA, which remains down. In an earlier Chaos Clinic I suggested the decline could run into January.
The slope of the top of the channel shown is 9 points per calendar day. That means just 40 days to go 360 points. This is the well know 40 day biblical cycle ( Christ in desert, Noah on Arc, etc). It is the Mercury/Moon cycle, know to astronomers since antiquity. It shows up in the earth's electric field, and thus, in price action.
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