Yes indeed.. You HAVE arrived on Fantasy Island... And it's now time to make all your dreams come true. All native bears have been exterminated here, and the biggest, burliest bulls in the world roam our pastures. To supply our guests with the most exquisite glue, we carefully select the most genetically perfect bulls to send to our nearby glue factory.
And now, as your host, let me extend a hearty welcome to you and hope you enjoy your stay here for the next COUPLE of MONTHS. After your depart, the island will be closed indefinitely, as BAD SMELLS are forecasted to erupt from the ocean floor and make life here intolerable.
And now, for your intinerary... You will be completing the 5th wave of a 5 wave set that began from the 10/8/98 low. The 1st wave concluded in 4/99 around 1365 SPX, the 2nd in 10/99 around 1230, the 3rd on 3/24/00 @ 1552, and the 4th today @ 1361. Island rules say that you must take this 5th wave at least 80% of the way back to where wave 4th wave began, which was 1552. That gives you a minimum objective of 1513.80.
Island rules also state that in completing this 5th wave, you can not journey further than the distance wave 3 travelled... 322 points. So the maximum distance you may travel is 1683. You will please all the natives on the island if you at least travel above 1590 so that you exceed the trend line connecting the 4/99 high with the 3/24/00 high. Natives will thank you for giving them a chance to disrobe at least that high so they will feel comfortable abandoning the shower areas for the next year or two.
Now there's a pattern in place that will light your way during your visit and journey with us. It's a DIAMOND, the most valuable of all patterns, and one that will reward you with great riches if you heed its warning. This diamond began in late Nov' 99, and if you view a daily chart, you will see how its prices spread out down into the Feb. 00 lows, and up into the Mar. 00 highs. This side of the diamond resembles a megaphone. But then prices narrowed into a symmetrical triangle, completing the right side of the diamond. Once you've connected the trendlines, you should be able to make out a clear diamond formation.
Diamonds are REVERSAL patterns, warning that the trend preceding the formation is about to reverse. The secret to the diamond is that prices break out of the diamond in the same direction of the trend, and THEN reverse. To calculate the projected move after the break out before the reversal, simply take the low price in the diamond (1329.15 on 2/25/00), and subtract it from the highest price in the diamond (1552.87 on 3/24/00). This gives you 223.72. The secret formula to calculate the price projection is this: Divide the difference in the high & low by the fibonnacci golden mean, and most important #... .618. Then add this amount to the low price in the diamond to arrive at the target.
Beware that prices often pull up just shy of a diamond reversal target before reversing, and in this case, we have a very good reason why this will occur.
The rest I leave to you. Make the most of your journey here on Fantasy Island... And beware... Many unexpected dangers await you along the way.
Boss |
