The fractal pattern posted 6/30/10 http://markettime-patterns.blogspot.com/2010/06/djia-fractal-possible-short-term-base.html went a little deeper than expected on the downside, but marked the low timing-wise. The rally since that low has now retraced 61.8% of the down leg from the April top basis the NYA index.
The chart of the DJIA mini futures daily shows a 385 trading day vibration that has marked highs and lows for several iterations. We are currently in the window for another turn if this cycle is going to show up again. Additionally, the rising wedge pattern since the July 2010 low appears to be nearing its terminus, though I wouldn't rule out another spike up in current turn window before rolling over.
After the current 385 td vibration, I also have clusters of linear and fib cycles lining up on 8/20 and then a larger confluence on 8/26/10. All dates are +/- 2 trading days.
Lastly, I believe the dollar is bottoming now, which may add to downside pressure on stocks going forward. I think odds favor another leg down to challenge or break the July lows.
Kim Rice 8/9/10
Kim Rice
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