This is what happens when you stare at a chart for too long. Lately it seems as though the IWM has been demonstrating some beautiful symmetries, the most obvious example is the v-bottom. The down move before the weekend of March 7th-8th mirrors the move up after almost exactly until after about 9 days:
Interestingly, when that symmetry ended another began. Then after another nine days we seem to be starting a new mirror image. The blue lines represent periodic axes of symmetry:
If this "trend" were to continue I'd expect the next two days to be red candles (we close lower than the previous close and the open). Then there'd be an up day followed by a big red candle. Does this really mean anything at all? Absolutely not. Would I trade based on this? No way. Is it a beautiful example of natural symmetry existing in otherwise chaotic markets? I think so.
Thursday, April 02, 2009
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