Fractal Geometry of the Stock Market is a study of price and time cycles in the US stock market. These cycles together form a fractal pattern that can be used to calculate the most probable price and time zone for the next major stock market top. The definition we are using for a fractal is simply a proportional mathematic pattern. A seashell is a good example of this type of a fractal, each set of rings is proportional. Using math and geometry, we can predict the proportions for the next ring of growth. The report shows how this concept can be applied to the US stock market. The report proves that the stock market is following a fractal pattern. The pattern aligned to the major tops in 1987, 2000, 2007, and more. The fractal pattern also compliments mathematic cycles described by Mandelbrot, Gann, Elliott, and Fibonacci. The report shows how these mathematic cycles and patterns have fit the stock market index data in the past, and all converge at the next major stock market top in the future. This is documented evidence that these cycles and patterns exist in the stock market. The calculations cannot be faked, all the charts and math can be reproduced and verified. This is obviously very valuable information for anyone that has investments in the stock market.
The Fractal Pattern Forecasts a Huge Advance in the Stock Market Now!
The fractal pattern forecasts an exponential advance in the stock market before the next top. The calculation is hundreds of points above the current price in the S&P 500 index which as of this writing in December 2016, is about 2200. Since there is a price and time zone for the pattern, the fractal will prove itself, the price will be in a narrow range in a narrow time window.
This research is purely mathematic, only raw price and time data from US stock market indexes is used in the calculations. The report describes the math used for the calculations in terms anyone can understand. Charts in the report show the fractal alignment visually, and the pattern is obvious. From any established fractal pattern, we can mathematically predict future growth, just as we can mathematically predict the next ring of growth for a seashell. A description of this pattern has not been published in any book or article that we can find. The patterns and cycles are not based on astrology, astronomy, sunspots, or anything like that.
The chart shown above is the S&P 500 index from 1984 to 2016. (This is not the fractal pattern.) The stock market indexes are commonly used by financial analysts as a barometer for the long term trend in the stock market. Most US stocks generally follow the same long term trend. Major tops and bottoms in the indexes, and most stocks, occur about the same time. Over the long term, the US stock market indexes usually trend up or down. Using some simple trend lines, we can roughly time the stock market using the indexes, but this is a lagging indicator, and is open to interpretation. The chart does show that there are times when an investor should not be in the stock market.
We are now in an uptrend, since 2009, we have seen a huge advance in the stock market. We can reasonably expect this trend to change sometime in the future. The cycles and fractal pattern in the report predict the most probable price and time zone for the end of the current uptrend.
The Report Proves the Pattern Exists.
These are mathematic patterns and cycles, this is not a theory. The report proves that the stock market has followed the cycles and patterns. There are four different cycles that all have alignments at key turning points in the past raw price and time data. These cycles all converge in the future in the same price and time window. A lot of people talk about fractals in the stock market, we have defined a major long term fractal that aligned with the 1987, 2000, and 2007 tops. We have also defined a Gann cycle, a Fibonacci cycle, an Elliott Wave cycle, and more.
The bottom line is that the report proves all the cycles and the fractal pattern exist. The next alignment will prove itself when it falls within the predicted price and time window.
The Next Top is the End for this Section of the Pattern.
Some of the cycles described in the report end at the next alignment. This signals a correction in the stock market after the next top. This will affect stocks, bonds, currencies, real estate, and commodity markets like oil, metals, meats, and grains. Having this information is like knowing in advance when the 1929 stock market top would occur. (The cycles do not tell us how the top will play out, just that a major top will occur in a specific zone.)
If you have money in the stock market, you need this information.
Anybody with a significant amount of money in the US stock market will benefit from this information. This includes 401K’s, individual stocks, ETF’s, and mutual funds. The cycle top signal will allow an investor to exit the stock market before traditional lagging indicators show that a major top is in place.
We are reporting the details of the fractal pattern and mathematic cycles, we are not providing financial advice.
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© David Poe