Seems the fib trip may be over for now....
For the past year, The markets have been on the slide, as you've noticed. From the fib extension POV, here is how the last year has broken down, why it rallied to where to did, then reversed to only go down further.
This chart suggests that the full fib extension has played out and should put in a decent bear market rally. Given the time of year it is, one might even call it a Santa Claus rally. It even goes as far as suggesting 300+ by Thanksgiving.
These fibs work very well and most of the time. However, in 2008 they bounced for a moment and blew right thru. That's when the large plunges began taking place. We're not in 2008, and the folks who run the markets run on greed and fear. I think the big dupe will be on the release of CPI creating a squeeze to push price back up into the 300's.
It's too early to tell, but this is how inverted head and shoulders patterns are created... and it quite possibly could be "the head" being created right now, resulting in a bullish trend into the end of December.... possibly back to 350. This is what I am watching for myself.
This chart suggests that the full fib extension has played out and should put in a decent bear market rally. Given the time of year it is, one might even call it a Santa Claus rally. It even goes as far as suggesting 300+ by Thanksgiving.
These fibs work very well and most of the time. However, in 2008 they bounced for a moment and blew right thru. That's when the large plunges began taking place. We're not in 2008, and the folks who run the markets run on greed and fear. I think the big dupe will be on the release of CPI creating a squeeze to push price back up into the 300's.
It's too early to tell, but this is how inverted head and shoulders patterns are created... and it quite possibly could be "the head" being created right now, resulting in a bullish trend into the end of December.... possibly back to 350. This is what I am watching for myself.
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