Projecting the DJIA and S&P 2000 Tops and 2002 Bottom with a BalancePoint and the Golden Mean
This first example illustrates the importance of our original concept, BalancePoints, and its importance in projecting a top in 2000 and a bottom in 2002.
The first chart illustrates how the twenty year move, June 25, 1962 - August 12, 1982, is multiplied by the basic Golden Mean ratio, 1.618 and then added to the 1967 top BalancePoint, July 7, 1967, to project January 14, 2000, a major DJIA top.
06/25/62 - 08/12/82 = 5077 days
5077 x 1.618 = 8215
There are 8215 days between the 1967 top BalancePoint and January 14, 2000.
The derivation of the 1967 top BalancePoint is shown in the upper left hand corner of the chart.
Click the chart to magnify it:
This second example uses the same 1967 top BalancePoint as a starting point. This point is connected to the February 18, 2000 top BalancePoint, which is between the January 2000 DJIA top and the March 2000 S&P top. There are 8239 days between the 1967 and 2000 top BalancePoints. I am going to use the ratio .618, the inverse of the 1.618 ratio used in projecting the January 2000 DJIA top.
- 8239 x .618 = 5091.7
- There are 5091 days between August 12, 1982 and October 10, 2002.
Click this chart to magnify it:
