Patric,
Before Greenie gave the gtg signal, I pegged 3.15 as a reasonable, symmetrical target. I don't believe in Elliot wave theory but we're in a wave 3 here. Wave 3's are sweet and use Fibonacci extensions such as 1.618.
Fib extensions are symmetrical in their own way. Pentagons are constructed from the length of a side. D = S * 1.618. Multiply a side by 1.618, to get a diagonal. Set a compass to a diagonals length and arcs from ends of a known side intersect to create a 3rd point. Set the compass back to the known sides length and arcs from the 3 established points intersect to create the 4th, and 5th point. 5 points form a Pentagon, also a circle. Speed resistance arcs in charting programs are based on this.
By inverting the formula to S = .618 * D, a Pentagon may be constructed without knowledge of the sides if one knows the diagonal.
There are serious troubles in the Oval office. Da Prez, Greenie, and all world leaders are working to bring balance to the markets. There will be balance! The Greenspan fix. Those with knowledge of Pentagon construction might be applying their 1.618 formulas to create geometrical stock market structures, some of which are rumored to be 3 dimensional, tetrahedrons, octahedrons and such. I don't know geometry is involved in creating balance in the markets, but I know the smartest minds in the world are behind it.
1.618 is routinely used to calculate extensions in financial markets. It's appropriate here to expect an extension larger than 1. Using 1.618 gives a target of 3.65, enough to get us over the hump of 3.62 from 7/22/98.
Osci |
