The SPX made a long term RST top of 2135 in May 2015 at the 1.618 Fib Extension [2137] of the 1576-667 bear market low before declining -12.5% into the Pi Time zone of 2015.75, followed by a rally to 2116, then the final double bottom low at 1810 on 2/11/16. The index has since advanced +30% to the 2351 high last week.
After an 8 week sideways range with extremely low volatility, the SPX made a 2084 S/T-O/S low at the 200DEMA zone on 11/4/16. The index was marked up +9.1% from that low, which enabled the SPX to finish 2016 at +9.5% on the year. Very few hedge funds beat the SPX in 2016, but that is no surprise because blind passive investing has beaten active money managers for some time because of the Fed actions/ponzi scheme The Algos are programmed to just expose portfolios to the equity asset index rather than worry about individual stocks.
The SPX +12.8% advance from the 11/4/16 election period 2084 to the 2351 high last week is obviously tagged the “Trump Rally”. I said in the previous commentary that Yellen would not let the market decline into the election that was supposed to be the Clinton coronation. I also said that Clinton appeared to be a lock, but the biggest election upset of my time happened, and certainly made fools of all the daily election polls and pundits who had her winning in a landslide
As you have observed by following my commentaries, or as members of my trading service at TM’s, or else purchased my PDF Manual “Markets Trade with Geometric Symmetry” [www.geometricmarkets.com], the markets have a definite geometric framework which is outlined in my Core Framework listed below:
-Markets trade with geometric symmetry and a natural order that can be be quantified in all time frames
-Markets trade in square root relationships
-Markets get extended to extremes due to crowd psychology and the herd mentality
-Volatility reverts to the mean
-Markets trade in cycles
-Fibonacci rules price
-Pi rules time
The next long term Pi date is the 10/11/17 zone which is 3141 Calendar days from the 3/6/09 Bear Market crash low, and also late Nov when calculated using 2017.90. The direction is almost always confirmed by technical confirmation [OS/OB], etc. at the time zone.
Kevin Haggerty