Kudos to MMs

ES 170 handles below "FV".

 

Sure it can. I find market analogies with physical theories to be rewarding. Some analogies are better than others imo, but that is not the point.

 

BTW, for those that find this sort of thing interesting, notice that this "model" is what is termed a mathematical equilibrium, and hence that markets are equilibrium seeking.

Complexity theory says this is wrong because markets are adaptive and modify the rules that govern their own behavior. Hence the "equilibrium" doesn't become a single price, but an attractor, almost certainly chaotic.

http://en.wikipedia.org/wiki/Attractor

PS The model as stated is also written down wrong. It should b 0 ~ ES - FV + VIX^(FractalDimension(SPX))

 

Stage 1 achieved. NQ is at least as strong as ES.

Now, patience padawah. 692 first target. 700 second, gap fill at 712 third.

 

Stage 1 unachieved. Oh brother.

 

Stage 1 attempting to get achieved pre-market

 

750 es sounds right, can we get there by march 21, 2009?

 

Ok. 700 SPX may be sold temporarily as profit taking. Doubt it, but would not be surprised.

Either way, 712 ish is the only logical place to take some profits, and even that is chicken.

 

SPX still trading well below "FV", which I estimate to be 850.