The only index of interest after Fridays close is SP500. This index will tell the world when the final top is in. I now believe it was 1.898,63 set April 4, 2014. Technically this point is a Fibonacci end number. To get above in to 1.900,00 area is very difficult. Nor the fundamentals or the technical analysis can support that now. The US and EU growth is 0,5 - 3 percent. Inflation is close to zero like interest rates. Unemployment is unchanged. The companies cannot cut prices further to increase the profits. We are in a long term stand still. The stock markets monthly trends are still strongly up but a stop will come and this could be it. Money is only moved between bonds and stocks and the medium term outlook does not point to any change. The currencies are stable. Commodities moves sideways. There are no serious war coming or going on that can change the trend.
The universal trend that Fibonacci found means that everything moves in cycles with five waves up and three down. We can now use the universal law to see price fluctuations and their next move. By using only the numbers we can now see how a trend will continue or between which numbers it will stay. Adding the time factor I now know how to do. A trend can move and hold one Fibonacci number after a period of 5, years, months, days, minutes or seconds. A trend does seldom go straight from 1 - 89 - the complete Fibonacci cycle - but after 5 in time it is over. - Current bull market started 5 years ago and has gone from 800 - 1.898. More than the Fibonacci number 1.300. Next target is 2.100 and will be held 2019, five years from now. A correction down to 1.300 will come but I do not know when. Fridays close could be the start.
Compare with gold as an example. Started below 300 the year 2000. The next Fibonacci targets after 5 years were 500, 800, 1.300 and 2.100. The market can only hold 800. The run up to 1.900 had no chance to take and hold 2.100. The allowed price 2014 or 14 years only allows one secured level which means that 800 will hold and 2015 current price 1.300 will hold. 2.100 will hold the year 2020. This is my own theory about the universal law applied to stock market indexes as an example.
The universal trend that Fibonacci found means that everything moves in cycles with five waves up and three down. We can now use the universal law to see price fluctuations and their next move. By using only the numbers we can now see how a trend will continue or between which numbers it will stay. Adding the time factor I now know how to do. A trend can move and hold one Fibonacci number after a period of 5, years, months, days, minutes or seconds. A trend does seldom go straight from 1 - 89 - the complete Fibonacci cycle - but after 5 in time it is over. - Current bull market started 5 years ago and has gone from 800 - 1.898. More than the Fibonacci number 1.300. Next target is 2.100 and will be held 2019, five years from now. A correction down to 1.300 will come but I do not know when. Fridays close could be the start.
Compare with gold as an example. Started below 300 the year 2000. The next Fibonacci targets after 5 years were 500, 800, 1.300 and 2.100. The market can only hold 800. The run up to 1.900 had no chance to take and hold 2.100. The allowed price 2014 or 14 years only allows one secured level which means that 800 will hold and 2015 current price 1.300 will hold. 2.100 will hold the year 2020. This is my own theory about the universal law applied to stock market indexes as an example.
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