2012-05-27

Wave Talk - 1286 or 1250?

From silicon_beaver:  SPX, last two corrections ended at FIB 61.8% (1158.66, 1202.37 respectively).  If correction FIB 61.8% remains true, then SPX should hit 1286.14 (in your chart, grey-line).
silicon_beaver - Thanks for commenting. Anything is possible! The fibonacci ratios can be found almost everywhere, and people sometimes get confused with using fib ratios. If a wave is assumed to reproduce previous ratios, the fractal itself needs to be in the same degree as what the wave reproduces from. Let's take a look:

The wave ended at 1158.66 (on 11/25/2011) is the 61.8% retracement of wave-[A] (from 10/04/2011 to 10/27/2011).
The wave ended at 1202.37 (on 12/19/2011) is the 61.8% retracement of wave-[B].D (from 11/25/2011 to 12/07/2011).

If the current downward movement is the corrective wave of previous upward wave-[B] (from 12/19/2011 to 04/02/2012), the 61.8% retracement is where the grey line ends. We can make this guess from the fib retracement 1158.66 but not 1202.37 (because 1202.37 is of a lower degree wave).

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