at the beginning of the year, we showed how the NASDAQ was exhibiting the very powerful TIME and PRICE equality. here is the post:
when time equals price it’s a heads up for either a BUY or a SELL. It is something to pay attention to … my friend and mentor Mike Jenkins (www.stockcyclesforecast.com ) pointed out the importance of 1890 yesterday. My charting package showed an intraday high on the cash SPX of 1889. Is it a coincidence that the March 6, 2009 low was 1890 days ago? Yes …maybe?
Here’s the chart of the Monthly S&P showing 1890 calendar day counts also 1890/2 from the 10/10/2002 low. Folks, simply saying the last time we had TIME equal PRICE not soon there after a correction occurred. What’s interesting is the GEOMETRY that plays out w/ this number … notice when this calendar count occurs (1890) PRICE was banging around, essentially, the same level. So I played w/ some numbers and divided 1890/1.27 and got 1488. Put 1488 on the chart and measured UP from that point to the 1900 is area. As you can see, I then put that measured move to the low and we had a perfect 1/3rd. It’s neat stuff …
We had some major cycles hit the past two-three weeks, we see “most” of the glamor names have sold/are selling off. We see the NASDAQ leading the crowd (well, in our world, it was the first to hit a TIME and PRICE equality) and the IWM sell pattern and it goes on and on …. not a bear, not a bull just a pattern recognition expert. In this case the patterns are SELLs and we better pay attention.