There
are countless reasons why the year 2021 is poised to be a year of pivotal
import. Below we provide one reason that can be counted several ways. The cyclical means by which such calculation
can be counted is furnished via the Fibonacci sequence. Go here
for more on the 2021 effect.
Despite the current price action in the S&P 500 since
the 2009 trough (up over 260% thus far) appearing as bubblicious as bubblicious can be, we disagree ever
so slightly with the ChartProphet’s definitive call for the 2021 Fibonacci
sequence forecasting a pivotal trough.
Given the nature of our clearly upside down world these
days, I would not discount the possibility that 2021 could potentially mark a blow-off
peak of epic proportion vs. an otherwise long overdue and well deserved
trough. Consider the 619% advance off the 1987 low for starters.
Keep in mind it has been our observation
on smaller time scales that the sequence can forecast key turn pivots with an
element of flexibility of plus or minus one period, in this case, years.
Here are some Fibonacci Turn Year assessments from the above
chart:
1987 – 2000 = 13 years. 2000 – 2002 = 2 years (Fib 3-1). 2002-2007 = 5 years. 2007 – 2009 = 2 years (Fib 3-1). 2009 – 2017 = 8 years. 1987 – 2021 = 34 years. 2000-2021 = 21 years.
Be it a peak or a trough that 2021 brings, the one thing we
are certain of is that the next 4 years are going to be quite interesting. Stay tuned.
