Livio, As a member and reading your member blog posts I was amazed how precise your exit signal was on February 18th. I just have one simple question. Are we close to the bottom of this crash yet?
Good Question Paul.
The simple answer is that question is only God knows the exact day, hour, and precise number is the bottom on the Dow or S&P 500. However, we have guideline to give us the general idea. which I will cover shortly. Before I cover “todays” chart, the next section is a review of one of our members posts and chart from 2 days ago:
Trend-lines, also known as bounding lines, are lines drawn on a stock chart that connect two or more price points. Since stock prices tend to trend, trend-lines that connect the highs or lows in the stock’s price history can help identify the current trend and predict what the stock price might do in the future.
The markets are based on TIME and PRICE. So in time the bottom moves along the final green trend line. X axis is time, Y axis is price.
The axis is the bottom of all the prior closings in time (trend line) in the price. That is why the green line is at the bottom of the rising price trend.
In our current chart above you can clearly see when parallel market lines of prior bull runs have a retracement or Bear Market there is always possible turning point.
One possible turning point is a right before a Fib/Phi level of a 28% decline at 2477.92. So until then I will not trust the validity of any counter trend bullish rally.
NOTICE: If it breaks the trendline just take a look at where the market could head using history as your confirmation. Ouch. Thank goodness the Wealth Preserver protected you.
That post was then and this is for today and when and where the bottom comes, lets look at the following chart.
To make it clear, I offered precise trading ranges to help you assess when and where the bottom arrives. Remember that price changes with time and that is why ranges are used because as time moves forward the range in the area automatically changes.
I have colored and commented each colored area in the chart for clarity and ease of understanding.
Ciao for now.
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