{"id":126822,"date":"2018-05-17T08:45:15","date_gmt":"2018-05-17T12:45:15","guid":{"rendered":"http:\/\/countingpips.com\/?p=126822"},"modified":"2018-06-01T15:39:46","modified_gmt":"2018-06-01T15:39:46","slug":"part-ii-vix-cycles-point-to-market-correction","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/05\/part-ii-vix-cycles-point-to-market-correction\/","title":{"rendered":"Part II – VIX Cycles Point to Market Correction"},"content":{"rendered":"
May 17, 2018<\/div>
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By<\/strong>\u00a0TheTechnicalTraders.com<\/a><\/u><\/strong><\/p>\n

Recently, we authored an article about Fibonacci price levels in which we referred to a term called \u201cFibonacci Price Ladders\u201d.\u00a0 This is our own term, as far as we know, and we used it as a way to attempt to explain how price operates within the Fibonacci theory.\u00a0 Our objective was to allow the reader to think of a standard ladder and how each ladder rung allows the climber to advance (move up) or decline (move down) using the ladder.\u00a0 We hope it helped all of our readers to better understand the concept of how price rotates within a trend to establish longer-term price trends.<\/p>\n

Within this post, we are going to revisit this Fibonacci Price Ladder concept to show you how recent price rotation may be setting up for a new, and possibly historical, price advance in the near future.\u00a0 We urge our readers to revisit our earlier\u00a0Fibonacci Price Ladder research\u00a0to refresh your memory should you have any questions about this research.<\/p>\n

DAILY DOW INDEX CHART<\/strong><\/h4>\n

This Daily YM Mini DOW Index chart shows the price rotation, downward, that moved directly to our Fibonacci support level near 24,600.\u00a0 Technically, this constitutes a \u201cnew price low\u201d formation and could foretell the end of this price correction before a new price advance begins.\u00a0 If you remember, our prior analysis has indicated a very strong potential for a very strong price move higher from recent lows.\u00a0 Yes, we expected this move and actually protected ourselves and our members by pulling profits in some trades near the highs last week.\u00a0 Now that this move appears to be nearing completion with a proper Fibonacci price rotation, we believe a new price bottom will form quickly near the 24,600 level (with massive support existing above 24,400) driving a new price advance within days.<\/p>\n

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DAILY ES CHART<\/strong><\/h4>\n

This Daily ES chart helps to confirm the Fibonacci Price Ladder analysis by showing an even deeper \u201cnew price low\u201d price rotation recently forming.\u00a0 Massive price support exists in the ES between 2684 and 2700 and we believe this level will hold to form a price bottom\/base before a new leg higher will advance price to new highs.<\/p>\n

This Fibonacci Ladder process is simple to understand, once a new price high or low is established, any failure to continue to set new immediate higher highs or lower lows constitutes a potential failure of the current price trend.\u00a0 So, if this recent low price move is a move to near a market base\/bottom, then we should expect an upside price rotation to set up fairly quickly over the next few days.\u00a0 We believe this will be the case and that traders should already be looking for new entry levels for the next leg higher.<\/p>

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DAILY VIX CHART<\/strong><\/h4>\n

This last Daily VIX chart showing Fibonacci Time\/Price cycles shows that we are nearing a major cycle date, with resistance just above the current price of the vix.\u00a0 We should expect the current downside stock market price to possibly extend downward, briefly, to establish a low price rotation and then reverse higher to begin a new upside price leg.<\/p>\n

It is our belief that the VIX will stall near the resistance level and fall back to near or below $11 as the new upside price advance in the US majors extends to near all-time highs.<\/p>\n

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Currently, we see this price rotation as a healthy normal price rotation that is essential to a further price advance.\u00a0 Price MUST attempt to rotate while establishing new price lows in order to establish new price highs.\u00a0 This is healthy, normal price rotation that we believe will result in a larger price advance in the immediate future.<\/p>\n

We are already searching for new entry triggers to take advantage of the future price leg higher.\u00a0 If you are searching for ways to profit from this, and other future price moves, then visit TheTechnicalTraders.com<\/a><\/u>\u00a0to learn how we can help with Daily video content, extensive and proprietary research and price modeling, detailed trade triggers and analysis and more.\u00a0 Our job is to assist you in becoming a better and more successful trader.<\/p>\n

Our 53 years experience in researching and trading makes analyzing the complex and ever-changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our\u00a0stock and ETF trading alerts\u00a0are readily available through our exclusive membership service via email and SMS text. Our newsletter,\u00a0Technical Trading Mastery book, and\u00a03 Hour Trading Video Course\u00a0are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.<\/p>\n

By<\/strong>\u00a0TheTechnicalTraders.com<\/a><\/u><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By\u00a0TheTechnicalTraders.com Recently, we authored an article about Fibonacci price levels in which we referred to a term called \u201cFibonacci Price Ladders\u201d.\u00a0 This is our own term, as far as we know, and we used it as a way to attempt to explain how price operates within the Fibonacci theory.\u00a0 Our objective was to allow the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-126822","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/126822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=126822"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/126822\/revisions"}],"predecessor-version":[{"id":126823,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/126822\/revisions\/126823"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=126822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=126822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=126822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}