Is the Top In on Stocks? Probably.

Posted below are a number of charts with annotations and analysis to follow-up on recent posts regarding the major long-term price and time projections that the DJI and SP ran into over the last week or so. You may want to review recent posts to see the major long-term geometric projections in the SP that, so far, have marked the top.

The first chart updates the timing projections from 1932, 1982, 1987, and 2009. One thing not annotated on the chart is that this web of timing also ties into a major top from 1796. As noted earlier, 8/10/13 is 1618 cal days from the 3/6/2009 low, and 8/12/13 is 1618 weeks from the 8/09/1982 low (which is 7 x 1618 days). The next expansion in time backwards would be 7 x 1618 weeks, which projects to 1796. I don't have charts back that far, but 1796 was the top of a bubble and start of the Panic of 1796-1797. Legislation enacted on 2/25/1797 kicked of an acceleration of the panic. If we rhyme with that period, late Feb to early Mar 2014 may kick off a panic wave down. That timing correlates with a confluence of a lot of projections which I will post in a future blog. In any case, a wave 2 rally into next Feb/Mar period might not end well.

Kim Rice 8/18/13