Our financial education commentary today is short and to the point. It educates on the use of Fibonacci math and application of the emerging science of Fibonacci and other cycles in financial markets.
Before we get to that topic, if you are new to this blog or want our full version of the current SP500 forecast, we recommend going back and reading the blog over last few days. In a nutshell, we will soon be entering a time and price target for a market top, and are describing the coming correction (change in trend to down) as an Elliott Wave Four scenario.
Eventually, as we get into the correction, there will be two quite different possibilities, depending on how Wave Four plays out when it finally arrives. We will advise about that later.
Leonardo Fibonacci, also officially known by other names such as Leonard of Pisa, was a famous Italian mathematician who discovered the world's most harmonic number set. We certainly will not teach in detail what this math entails, but there is a plethora of highly useful information on the web.
Suffice is for us to say that Fibonacci numbers are not just endemic on our planet Earth, but rather our entire universe. In fact for many, the more one studies Fibonacci, the more one becomes convinced of a Universe created by intelligent design.
Within the financial markets, including the SP500 Index Fibonacci cycles and time and price targets are very robust for those market analysts that know how to use and interpret them.
Today's chart is a weekly chart of the SP 500 Index. The SP 500 is not just representative of many large USA stocks, but it also serves as a bellwether index that closely correlates to many global indices. For instance the correlation between the Canadian TSX stock index and the USA SP 500 Index is undeniable.
Our chart exhibit depicts, a soon to be Fibonacci event, in that time and price cycles will meet.
The user of this chart must also keep in mind that this is derived off of weekly data, so one needs to use a fairly flexible time window of when a change in trend might arrive. Our professional view is that the Fibonacci time cycle window begins on Monday November 22, 2010 and ends on Friday December 03, 2010. This is only a window of two weeks.
This time cycle window is very tight in that the Fibonacci ladder began over three years ago, so this represents a very small time window. A more flexible time window might add and subtract one more week.
Our conclusion is that the Fibonacci time and price ladders closely correlate with our more precise KRTT cycles, some of which we have discussed on he blog recently.
See the chart below.
Please note that tomorrow is Veterans and Remembrance Day. Although many global financial markets will be open, we expect the day to be light volume and inconsequential to our current forecast.
We will not be posting a blog tomorrow in respect for current military members and our fallen Veterans. The links below are some of my personal favorites for suggested viewing on November 11, 2010.
Tomorrow, I will particularly be remembering my Uncle Charles G. He was the unfortunate twin brother (on my mother's side) that did not come home from the Great War along side of his other brothers that fought with him, Richard and George.
Lest we forget.......
We will not be posting a blog tomorrow in respect for current military members and our fallen Veterans. The links below are some of my personal favorites for suggested viewing on November 11, 2010.
Tomorrow, I will particularly be remembering my Uncle Charles G. He was the unfortunate twin brother (on my mother's side) that did not come home from the Great War along side of his other brothers that fought with him, Richard and George.
Lest we forget.......
Remembrance Day - Pittance of Time
A Soldier's Cry
Remembrance Day in Canada
See you back here on Friday November 12, 2010
Sincerely,
James Kelly Sr.,
Editor in Chief, BBTL Blog
www.KRTT.com
www.Facebook.com/KRTTcom
www.twitter.com/KRTTcom
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