Is the Fun Over?
Using “Chartpolation” or chart interpolation, S&P500 will correct to 831. Using previous charts of S&P500 and Aud/Nz Pair whereas both have resembled a likeliness on their V bottom pattern.
The following computations are follows:
Aud/Nz base = 1.06 to 1.30 = 0.240
bottom of correction is at 1.20; high 1.30; difference = 0.100
100/240 = 41% ratio
S&P 500 low=667; hi 944 ; diff =277
ratio @ 41%. correction is 277 x 0.41 = 113.57 points
expected level of correction is 944 – 113 = 831
For PSEi, the gaps at 2488 have been filled. What keeps me from worrying about the PSEi is that the filling of the gap is a tease, meaning, it was an intentional reason of the market to rally past beyond the 2300 threshold, “just to fill the gap”. After filling the gap, there’s no more reason for the market to pushed higher, thus the final breath of the rally. The ultimate “tease” would be for the PSEi to fill the gaps made when it rallied. Fortunately these gaps are runaways but a “tease” market tends to spoil the fun. Charts will be posted later.