It’s just amazing to me what the spinmeisters come up with in a raging bull market. Oh yeah, the market timing windows we’ve discussed for months have also confirmed. That’s probably the real scoop because I really haven’t found anyone talking about these cycles.
But we have to move on because the market is back in rally mode. It found a low last week on some good Fibonacci calculations in the E-mini S&P. As you can see, here is my left handed attempt at Elliott but the ratios are very close to a golden spiral 61/161.
That’s my justification for the low. Thus far the move off the low looks very decent. In terms of psychology we are there. The VIX hit over, 30 which is a monumental landmark for those who told us it would never get beyond 15 ever again.
Now that it hit 30, should we shoot for 60? That’s an interesting question when you consider the kind of psychology it took to even get it this high. Of all things, a deadly virus as terrible as the timing cycles are big. By the time they found that low last week I wouldn’t say it was a one way all in type of market that had the feel like it was going down forever, but there was enough fear to make us feel like we were all going to die, even though we secretly really didn’t believe it.
Answer this question honestly. Last week, when the news hit that the nurse who flew from Cleveland to Dallas had Ebola, at any time did you actually think you were going to get it?