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SP500 observation

Strong move off the 18th April Low . So how can we gauge the potential amplitude of this price movement . My first approach is to go back in time and study previous matching Cycles that may give me an indication of how long we can expect to run up in time and price . The first Cycle of interest starts with the 9th Feb 2018 low with price moving up to the 14th March top then down to the 2nd April 2553 low and then up to the 18th April Top 2717 . a move of 164 points or 6.4% . Most people will pass over this and take little notice notice but there is an important lesson to be learned here and by concentrating on just time and price we may be able to form a projection . If we add 6.4% onto the 18th April low at 4370 we get a price of 4649 . This is just projecting a previous swing of matching structure to the Low and then we can seek to align this level with other price calculations . this equates to a move of 279 points which would take us just above the 29th March Top so we should note this level in our diary for future reference .


Two Squares up from the 4114 Low = 4374 which aligned very closely with the 4370 low . Four Squares up or two full revolutions in price = 4643 which balances very closely against the previous swing so we have two coordinates lining up which could point towards an important price zone to monitor . 4544 will be an important point to monitor also as it is two Squares down from the Top so if we move above this point and hold trend it could indicate stronger but the most important consideration is Time and when time is up both volume and space will increase as we complete the Cycle . So for the time being we have a few price targets to observe and my strategy would be to wait for a particular date to come in and if it coincides with a counter trend low that could present a low risk opportunity to enter the market in line with the prevailing trend . Think of it this way the train has left the platform on the 18th April and its next scheduled stop is on a certain date so if you missed the chance to purchase off the 18th April Low you can always wait for the train to pull into the next station but be very selective and wait for a counter trend low to present itself . never second guess and try to get ahead of the market . only take action on clearly defined Cycle dates and prices .


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Pablo Labatut
Pablo Labatut
Apr 20, 2022

Why is the previous matching cycle the one that starts on 9 Feb 2018?

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because past Cycles have a tendency to repeat in terms of swing structure pattern and sometimes price amplitude

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under which level of retracement it will cancal the up move ?

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