Market Nexus Points

Robert Prechter’s  book “Beautiful Pictures” illustrated several examples in which long-term stock market structures could be divided into Fibonacci price/time sections.  One example showed that the Dow Jones Industrial Average bull move from July 1932 to January 2000 was divided into two thirty-four-year sections with the 1966 peak as the nexus point.

Its possible the same phenomenon could be happening with the 2009 to 2021 bull market.

The weekly S&P 500 (SPX) chart courtesy if Trading View illustrates  potential price/time nexus points.

The start of the bull move in March 2009 to the peak in May 2015 was  324 weeks.  Adding 324 weeks from the May 2015 peak targets the first week of August 2021.

The SPX had a growth rate of 220% from March 2009 to May 2015.

Multiplying 220% by a Fibonacci .50 is 110%.

A  growth rate of 110% from the SPX May 2015 high of 2134.72 targets SPX 4482.91 as a potential top.

This methodology lacks precision and leeway should be judged based on the time frame and growth.  This time frame covers an eleven-years and a gain of over 500%. Plus, or minus one  to three weeks could be the time leeway.  Price leeway could be plus, or minus 1.00 to 1.50%.  

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.

2 thoughts on “Market Nexus Points

  1. “5” is a Fibonacci number and .50 is a Fibonacci ratio.
    The Fibonacci sequence is 1,1,2,3, 5, 8, 13, 21, to infinity.
    The main Fibonacci ratios are 1/1 = 1.00 equality , 13/21 = .619, 1/2 = .50, 8/21 = .38.
    I should have noted in the text that .50 is a Fibonacci ratio. Sorry for any confusion.

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