TheFuture
 
Towards a Theory of the Future
Cycle Analysis
 


Market Geometry

An example of the elegance of the geometry hidden in the waves of the world's markets (and world events!?)

This example uses the futures Share Price Index (SPI) chart for Australia(1987-1997) and at present will focus on the years immediately following the 1987 crash. The major turning point prices are indicated on the chart(below).
Note: The charts are plotted using calendar days ie. weekends and holidays are included.
The calculations below show how the wave form of the Australian SPI resonated to the ratio "created" by the 1987 Crash (ie. 2387/1054 =
2.2647). Even major news events(the US bombing of Iraq in the Gulf War (17-Jan-1991 [Australian-ESTime] ) seem to be locked into the unfolding resonance of the waveform! (see the 1184 bottom below, made on 17-Jan-1991).

 

Example Calculations:
Actual price Ratio:
2387/1054 =
2.2647
This "Crash" Ratio is used below to illustrate how the wave-form following the Crash resonated to this Ratio.

Price Range Ratios:
2.2647 *
(1408-1054) = 801.7
(1054+801.7) = 1855.7

(2387-1184)/2.2647 = 531.2
2387-531.2 = 1855.8

 

This chart (below) is an enlarged view of the waveform of the SPI(Aus) from 1855 to 1184.
(The day the Aus. market bottomed on 17-Jan-1991 was the time the US began it's intensive bombing of Iraq in the Gulf War.)

Continuing to use the Ratio 2.2647 (see above), the unfolding of the correction is seen to respond to this Ratio.
Time Ratios:
(Fractions of days are used in this example)
2.2647*91.7 days = 207.8 days
2.2647*207.8 days = 470.5 days
(see chart)

For Enquiries contact Rod Binnington