A lot of
pattern recognition "warning" in these charts
around these levels. The straight line 6 year uptrend of the DJI and S&P 500 has to change sometime....6 is a significant number. 6*12=72.
(Also some quantum experiments have shown that the levels of 1.5, 2.5, 3.5 etc are most common areas of congestion- cant find the reference to that again.)
Also on the DJI monthly, the last 4 months look like an upthrust that has exhausted at a significant level. The high being 150% extension of the last retracement-the fall of the GFC from the highs of 10/07 to the lows of 03/09.
View attachment 42015
Previously, the same 150% pattern occurred from the extension of the retracement of the 01/2000 top to the 10/2002 low.- The 150% extension occurring in 10/2007. Then the GFC fall of 100% absolute.
View attachment 42019
Also the S&P 500 monthly has the same 4 month exhaustion pattern, stalling around the 150% extension of the GFC retracement. Using the GFC retracement seems like a significant event for a frame of reference to gesticulate on charts.
View attachment 42018
But the XJO has only extended up around 65% of the GFC retracement.
Apart from a good number to use for share-market charting- some Interesting facts on the
number 72. The number of months of the straight line DJI-S&P500 trend seems to have a high probability of being satisfied that it has reached this number.
http://en.wikipedia.org/wiki/72_(number)
- In degrees Fahrenheit considered to be room temperature.
- The average number of heartbeats per minute for a resting adult.
- Percentage of water of which the human body is composed.
- The life duration of the ovule is 72 hours.
- The axis of the earth moves one degree every 72 years compared to stars and to the vault of heaven.
(20min delay)