Those who follow the market reasonable close know Fibonacci numbers and ratios are important (1, 2, 3, 5, 8, etc.; and 0.382x, 0.618x, 0.764x, etc) for understanding the market and projecting price levels. However, can we use Fibonacci both for price AND time? Since the high made in May 2015 we’ve been tracking the S&P500 using two Fibonacci-number related trading intervals (green and red) and found that price more often than note turns rather significantly around these Fibonacci-related trading day intervals.
Thus the market is also on a Fibonacci-related internal clock; and we can therefore reasonably well start to time the market. Of course these turn dates don’t tell us the direction of the turn prior, but once we know the direction of price going into the turn date, we can reasonably well anticipate which way the turn will be. Obviously it doesn’t work all the time; but no method is 100% perfect in the market. But, as long as it works more often than not, it is a useful tool.
So what does all this mean for the market. The last Fibonacci-based turn date was December 2, and the market has since not looked back 🙂 Our next turn date -using the 2nd interval- is set for December 29. Given where the market currently is, we expect a top around that date. How high should that top then be? Possible around SPX2300 to 2350 depending on which smaller degree wave the market will be in by then.
We can now watch and wait to see if we get to those price levels by then, and as such anticipate the next market turn.
ps: please note how price has moved above the black uptrend line and yellow uptrend line. The latter is in place for many years and today was thus a very significant development.