THE GOLDEN RATIO & π: The Phi and Pi relationships, a mathematical importance to Markets

Phi, Pi OH MY!

• Phi, the Golden Ratio that appears throughout nature.
• Pi, the circumference of a circle in relation to its diameter.

Look to the pyramids. Look to Nature.

This site goes into great detail about life's most intriguing set up: http://jwilson.coe.uga.edu/emat6680/parveen/fib_nature.htm

If we apply two of Nature's special laws, the Golden ratio and Pi, to the markets we find a confluence of price levels almost at nearly the same price!!

Let's break it down.

Phi's number is 1.618  

The Fibonacci extension from the 2009 low, gives us a price target of 2138

Pi's number is 3.14159...

Multiply Pi by the closing low in the S&P500 (676.53 x 3.14159) = this will yield a price target of 2125.38

The Market will make a ROUND TRIP MOVE or the GOLDEN MOVE  as it approaches these targets. 

Once the move is done, it will be time to get off the bus. And we'll witness the bull market high for some time.

Ultimately my price target for the S&P500 is 2150 based on Pivot Point Analysis (using the /ES Sept contracts)

Remember these are important ratios that are around us and with us everyday of our lives.

Respect them.