10.1
Phi And The Stock Market
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The stock market's patterns are repetitive
(and fractal, to use today's terminology) in that the same basic
pattern of movement that shows up in minor waves, using hourly plots,
shows up in Supercycles and Grand Supercycles, using yearly plots.
Figures 3-12 and 3-13 show two charts, one reflecting the hourly
fluctuations in the Dow over a ten day period from June 25th to July
10th, 1962 and the other a yearly plot of the S&P 500 Index from
1932 to 1978 (courtesy of The Media General Financial Weekly).
Both plots indicate similar patterns of movement despite a difference
in the time span of over 1500 to 1. The long term formulation is still
unfolding, as wave V from the 1974 low has not run its full course,
but to date the pattern is along lines parallel to the hourly chart.
Why? Because in the stock market, form is not a slave to the time
element. Under Elliott's rules, both short and long term plots reflect
a 5-3 relationship that can be aligned with the form that reflects the
properties of the Fibonacci sequence of numbers. This truth suggests
that collectively, man's emotions, in their expression, are keyed to
this mathematical law of nature.
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