Thursday, October 9, 2008

$SPX and $NDX have fallen to Quarterly Bollinger Bands





Pretty amazing how far it has fallen. This does look like a good place for a bounce because Bear market rallies often start in October.

2 comments:

Shawn said...

Hey Mark,

How long do you see this bounce may last? 1 month? Thanks

mlytle said...

Hi shawn,
Good question, truth is I don't really know. After 5 quarters more or less straight down, maybe you get 1 quarter up or 2 up, maybe. These are Fibonacci based guesses, as the wave patterns are so extreme.
If we really get a bottom that holds here, then maybe we can trust the wave patterns inside of the 5 quarter down move to make some exponential time predictions going forward. But the equations want "real" current endpoints to determine future endpoints, and as of yet we don't have that confirmed, although I think price wise more than time wise, we are close...

Regards,
Mark L.