the KEY here is are we finishing a triangle and this latest leg up represents the final sequence (e) of a,b,c,d,e … the relationship that is giving me a ‘hint’ that this might be the case is the fact that the e is representing .618 of b-c (a common relationship in triangles) on the charts, that is the green line w/ .618 to the right of the green line.
also the ratio of SOXX banks / US Banks is presented. just because a sector might outperform on a relative strength basis does not mean it will go UP because it’s outperforming. in this case, it could mean it goes down slower … or, this move up is complete and US banks to outperform. however, because of the long term downtrend in STRENGTH of STOXX vs US Banks would monitor this closely. A continued increase and movement in STOXX vs US Banks ALONG with a consolidation or a breakout of the blue shaded box shown on STOXX Banks charts could mean important and noteable strength has developed. Monitor the ratio for clues ..
Hope this helps and thanks for asking and visiting the site .. let me know if you have any questions.
Bart
Wow this is a great analysis,thank you very much…so do you think in the next months probably we can see move down at least 100 area (61.2 fibonacci) or also 72?
again, thank you for asking and visiting the site. we really don’t know anything until we break the trend line (lower end) or get a SRC lower. It’s “hit” but we need to see what the next week or so brings – does that make sense?
Yes,thank you again. Have a good weekend. Paolo