When we study the hourly chart of the S&P500 in detail we can’t help but notice that two similar patterns, aka fractals, formed off the SPX2194 high. The first is a similar decline, we’ll call fractal 1. The blue and red lines in the price chart follow price’s highs and lows, and when we then only look at the lines we can see how similar they are (after a little time-line adjustment to align some of the highs and lows better). Bottom line: similar pattern: fractal.
When we then look at the sloppy advances from both fractals’ lows we also see that the advances were similar: fractal 2. Doing the same thing as before (looking at the lines only, which are both compressed similarly to fit the page) we clearly see a similar pattern.
Question now is, if after the similar sloppy advance off the SPX2115 low to the SPX2155, we’ll get to see one more decline from the recent SPX2155 high to new lows in a similar pattern/fractal (orange dotted path)? We don’t know, but it be kinda cool and it’s prudent to keep an eye out for it.
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