- the market is vibrations.
- vibrations are waves
- when a rock, for instance, hits a pond it produces waves that manifest outwardly
- in the market, the ROCK IS THE INITIAL IMPULSE MOVE
- we divide the high and the low and we get the fundamental frequency.
- in this case it’s equal to – basically – the golden mean – 1.619
- 1.619*1767 = 2862 and THAT landed right on the 1.27 extension (square root of 1.618) of the 2007 high.
so, we have a lot of patterns coming into play and that is arcing out the “standard” H+S pattern w/ the neckline shown by the dashed black line …. looks like 2500 ish is the neckline … a weekly close below that is something to watch …big time.