cyclichigh's - doin' it nude thursday, page-78

well there you have it.

as I noted last week the 0.618 time extension of the 1/7/2010 to 2/5/2011 bull run for the US came in on Sunday. I proposed we would have a fast rise in the US with a new top on monday night eclipsing that of 28/10/2011 (which was the Aussie 618 extension date) and that we would start a fast decline on Monday. We didn't in fact make a new top but we made a sharp top nonetheless on Monday night, which was the first trading day after the official 618 date, and probably most importantly that fast down started pretty much where it should have.

I have messed around with this technique a bit trying 0.236, 0.382, 0.618, 1, and 1.618 time extensions and it would seem that it is the 0.618 extension that works the best. I know there is a head and shoulders on the XJO chart (or maybe you would interpret that as a lower double top) that now looks to be playing out but I would say the aussie and US 0.618 extensions provide a really good reason in time as to why this pattern occurs here in the first place.