Market Nexus Points – Part Two

Robert Prechter’s book “Beautiful Pictures” illustrated Fibonacci time/price relationships within the Dow Jones Industrial Average bull move from July 1932 to January 2000. Prechter also examined Fibonacci time/price  relationships from 1974 to 2000 that tied in with targets derived from the larger price structure.   

The previous blog “Market Nexus Points” illustrated Fibonacci time/price relationships within the secular bull market that began in March 2009.  This second part of that blog focuses on possible Fibonacci time/price relationships within the bull market that began in March of 2020.

The daily S&P 500 chart (SPX) courtesy of Trading View examines potential nexus points derived from the bull move that began 03/23/20.

The SPX 09/02/20 top is a possible nexus point because it’s the highest point of the bull move just before the largest correction within the move from March 2020 to July 2021.

 03/23/20 to 09/02/20 was  114 trading days, multiplied by the Fibonacci sequence number of “2” equals 228 trading days, added to 09/02/20 targets 07/30/21.

Another calculation is  114/228 = .50 Fibonacci ratio  1/2

Another calculation is 114 + 228 = 342.     114/342 = .333 an outlier Fibonacci ratio 1/3

The SPX  growth rate from 03/23/20 to 09/02/20 was 63.7% multiplied by the Fibonacci ratio of .382 calculates to 24.3%.  Adding this growth rate to the SPX 09/02/20 high of 3588.11 targets SPX  4461.24. 

The target of 4461.24 is within leeway of the 4437 and 4438 targets noted in the “Fibonacci Resistance Points” blog. 

Time leeway could be plus or minus five – trading days from the bulls-eye target of 07/30/21.   

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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