Price Time Volume Investing

The range from October 2007 to March 2008 was significant. The high was the high of the long term bull market and the low was the financial crisis Bear Stearns blow up. The time cycle of that range ends next Friday. The question is what happens next?

A few scenarios look possible.

1. It could be a high with a drop into October (at least).
2. It could be a low with price waiting for this cycle to finish near the 100% retrace before moving higher.
3. Price could move higher another 1/8 of a time cycle into the second week of September before falling apart.

Price has only moved up 270 degrees off the July low and another 90 degrees to 1343 is not out of the question. If I had to pick one then I would pick #3 at this point. The waves are looking poorly for a bull market to start in October and I will start looking at other possibilities. I’ve found that when everything lines up (and it will - sometimes not found until after the fact) it is obvious what will happen.

Tags:   Square of Range · Square Out · Standard and Poor's 500 (S&P500)No Comments