The SP500 Index (SPX) move off the October 2002 low has followed the square of nine price progression. The mid-point slow down of wave three in June 2003 occurred 720 degrees from the low. Price did not hit this point exactly but it respected the resistance from the level. There were several other places along the way I remember these levels came in handy. But price never hit one exact…. until the October high. I have noticed when price hits something exactly, it is much more meaningful than a glancing blow.
Post Modified: July 3rd, 2008 at 12:29 am
Tags: Elliott Wave Analysis · Square of 9 · Standard and Poor's 500 (S&P500)4 Comments
4 responses so far ↓
andy are u saying we need to go back to june o3 prices
andy, theres a rising wedge starting in march,if it broke tommorrow it would be 1309,my experience with your charts is your dates point out those moves, are u looking at some time in june
Mike - No, certainly not 2003 prices. My comment of the “meaningful” top is that it ended the second five wave up move. History tells me when a move ends exactly at a 360 cycle (here 6 cycles) then the retrace is significant (in time and/or price). This applies to both tops an bottoms.
Mike - Current outlook: I don’t know. I expect a retest of 1440. And I expect that in a couple weeks. This could put us with a final run into mid-June to early July. Or we could move higher sooner and go above 1440. Either way, the next time down should be a sell signal.