Pi Still Rules Time and Creates Significant Trading Opportunities
I stated in the previous commentary that the significant long term significant RST monthly sell pattern would be triggered with an SPX monthly close below the low of the bull cycle high month which was a 2134.72 high and 2067.93 low.
The cycle high was 5/20/15 and it closed in June at 2063.11 with the long term 5RSI negative divergence that has been obvious for many months. That was the RSI monthly sell trigger and the SPX declined -9.5% from that close to 1867, and -12.5% from the actual 2134.72 bull cycle high.
The SPX high cycle close to that point was 2107, which as I mentioned in the previous commentary, was the high cycle close, and 2105 was also the 1.618 fib extension of the 2007 -57% SPX bear market panic from 1556 to the 667 2009 bear market low
The SPX made a triple monthly top at 2134.72 [5/20/15], 2129.87 [6/20/15] and 2132.82 on 7/20/15] It declined -12.5% in 25 TD`s [3 x 8.6] to 1867.01 [8/24/15], then bounced to 2020.81 on 9/17/15, or 17 TD`s [2 x 8.6] only to be followed by a double bottom low in 8 TD`s [8.6 & Fib] to 1871.91 9/29/15. Pi symmetry prevailed again as it was 25 TD`s [3 x 8.6] from the 1867.01 to 1871.91 low
The major long term Pi cycle symmetry date was 2015.75 which was 9/30/15-10/1/15 which is calculated as follows: .75 x 365 = 273.75 and 12/31/14 + 273 = 9/30/15 and + 274 = 10/1/15. However it is more a time Pi time zone and you allow some time on either side of the calculated date.
The SPX made an O/S low into the Pi time zone which was the most O/S on a monthly 5 RSI basis since 2011, so the highest probability confirmed by the technical evidence was for an O/S reversal to the upside.
Since the 9/29/15 1871.91 double bottom the SPX was marked up +13.1% in 25 TD`s [3 x 8.6] to a 2116.48 high on 11/3/15, and has declined -3.3% in 7 TD`s to the 11/13/15 2045.97 close. The high close for this current double bottom central bank mark up was 2109.79 so the 1.618 2105 fib extension zone remains in play.
The is no reason to comment on the fraudulent central bank market manipulation/ponzi scheme as there is no realistic evidence or credibility with any thing the Fed or BLS etc presents in data, but just BS from a Fed that has blown it big time and has lost control of almost everything except the ability to mark up equity price indexes on fewer and fewer big cap stocks with the help of some select HFT firms. I haven`t changed my opinion on selling strength especially if you didn`t pare down on the initial trigger