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| Stock Market Time Cycle & Price/Time Vector |
Best place to short the market, is now.
If history has any relevance (which IMHO, does dictate the future behavior of human, thus resultantly, the financial markets, we invest in), potential impeding decline shall be phenomenal, once the price level of 06/16 is broken. Bull market trend has been over-balanced in price and time, see the picture attached here.
If you browse the chart., each time correction prolonged in price and time. Each number on the bull-run or correction is price/time vector. the other numbers are trading days between swings. As you see the correction got sever on every bull-run, however bull run remained the same in the length of time, however, it did extend according to Fib. numbers.
After the 61.8 price/vector leg up till Feb/18, market dropped and then moved higher in ABC wave, marking a top on 05/02. Price time vector was 35 which was exceeded by the recent correction from 05/02 to 06/16. Not only the correction exceeded the recent leg up (or wave 5 for Elliottians ), but it also exceeded the leg down from 02/18 to 03/16 in price and time both, as shown by the price/time vector.
Rule of trend determination: Once a correction exceeds all previous corrections of the bull market, then trend is changed. The height of the rally after the first impulse down, is the best and safest place to "Sell".
Maximum time, allowed for this rally is until Friday 07/08/11.....
