This is the second post this weekend. If you have not seen the first one, yet, you may wish to review it now.

Many readers of this blog followed the last time relationship we posted in that 2018 was a Fibonacci 89 years from 1929 since (1929 + 89 = 2018). The Fibonacci number 89 is the next number following 55 in the sequence 1,1,2,3,5,8,13,21,34,55,89... and is calculated by adding 34 + 55 = 89. The largest correction in the bull market to that point in time occurred in October of 2018. This was a top-to-top relationship, as 1929 was a top, and 2018 was too.

Another Fibonacci time relationship may exist in the chart below. I have not seen this elsewhere and know of no-one else who has made us aware of it.

ES Futures - Monthly - Fibonacci Time |

This relationship would also be a top-to-top relationship, as well, since 2007 was a very significant market top. The question now is, "do we, in fact, have the famous 'too-far-too-fast' signature of a contracting ending diagonal" - which up to this point in time has maintained it's length relationships. If so, then the Intermediate fifth wave (5) would clearly be the extended wave in the sequence, as it is longer in points than wave Intermediate (3) in this form. And this extended fifth wave would be contained within what is, itself, the extended fifth wave of cycle V.

This is not too make too much of one significant lower day. Many further price confirmations are needed. Still, fore-warned is fore-armed. The information is what the information is. The question is whether it will amount to a top, a near top, or even "the" top.

Another reason for liking this form of the end of the Cycle is that the NQ futures have more than surpassed a (B) = 1.618 x (A) relationship. That may not be fatal for an Intermediate (B) wave count, but it does pose a challenge to it. The ES futures have only marginally nicked slightly over the same point.

So, we will be cautious, but we will also be curious. We will inquire. We will ask the market questions and see what answers it helps provide.

Have an excellent rest of the weekend.

TraderJoe