In the previous market commentary, I mentioned that the SPX had consolidated at the 100DEMA 1771 zone for five days in the last week of Jan, but obviously took that zone out with the double bottom low at 1737.92 on 2/5/14.
I also said that “There is some significant time symmetry in the first week of March, and if the current SPX bounce from 1737.92 fails and reverses down to the 200DEMA zone or lower going into that period, or else continues to advance higher into that time symmetry, we will anticipate a reversal depending on the technical O/S or O/B condition at the time”.
The SPX was +4.3% for Feb to 1858.45, and then made a 1883.57 bull market Pi cycle high on Fri 3/714, which is 60.2 mo [7 x 8.6] from the 3/6/09 667 bear market low. The bull market from the 2002 769 bottom to the 10/7/07 bull market high was also 60.2 mo [7 x 8.6] The advance is +182.4% which is 3.16 times [Pi 3.14] the previous -57.7% cycle decline from 1576, so that is also significant symmetry relative to the timing.
Since that 1884 intraday high the SPX has declined -2.3% to an 1839.57 low last Fri and closed on the lows at 1841.13, or -2.0% on the week. It is difficult to predict with any high degree of success the extent or duration of a market move, but you can identify high probability reversal zones with a positive mathematical expectation of success.
The technical O/B or O/S evidence has to confirm high probability reversal zones and I have included the SPX monthly chart as of the 3/7/14 1884 Pi time cycle high, and you see the 123 monthly chart 5 RSI negative divergence that started with the extremely extended 91.30 high.
Also, the 1576 2007 cycle top had the same 123 negative O/B divergence, in addition to being a 60.2 mo [7 x 8.6] advance of +105% from the 2002 769 bottom. It is significant to note that the 2007-2009 bear market was a 17.2 mo [2 x 8.6] -57.6% decline. The 2000-2002 bear market was 31.4 mo [Pi 3.14] from 1553 -769 which was preceded by the 1998-2000 bull cycle of 17.2 mo [2 x 8.6] to the 1553 top. These are the recent major top and bottom reversals, but there are many more minor ones within those major moves that are easy to identify on a monthly chart.
There was also other significant square root and Fibonacci symmetry with the various examples, but the 3/6-3/7 period is the Pi symmetry time zone mentioned in a previous commentary, so I confined the examples to that.
There is a natural order to the markets, and they trade with geometric symmetry and cycles that can be quantified in all time zones by using the primary geometric tools which are square root relationships, Fibonacci, and Pi, especially the 8.6 year cycle [Martin Armstrong] It is a method of timing anticipation that can be used by money managers, analysts, investors or traders, with indexes, stocks, bonds, commodities, and currencies.
My manual “Markets Trade with Geometric Symmetry” is available for purchase at geometricmarkets.com, where you can also download for free my six calculators that I use to measure price and time symmetry.