I’ve been highlighting this “Arc” or “Mirror Image” Pattern in the S&P 500 and US Stock market to members as it developed, but let’s take a look at the pattern as it nears completion.
Here’s the S&P 500 “Arc” or “Mirror Image Foldback” Pattern in currently motion:
A “Mirror Image Foldback” Price Pattern is a lesser-known event where a clear symmetrical image develops.
It looks like an “arc” or a rise on the left side of the grid with a similar fall on the right side of the grid.
In other words, the “future projection” on the right (which has almost completed) will be very similar to the preceding pathway on the left.
Like anything, if you want clues to the future, simply look to the past.
The focal point now will be where the market bounced off the 2,015 level, though we currently trade under the pivot support.
A failure to hold this level simply suggests a fall down further toward 2,000 (psychological target) and perhaps the 1,980 level.
Develop your trades based on the support or breakdown (failure) of this level.
We can see a similar Foldback Pattern in all four US Equity Indexes (seen using Futures Contracts):
The Foldback Pattern – a pathway to the future directly from the past – doesn’t occur often, so be sure to use this current example as a key reference for the set-up and follow-through of the event.
For more daily updates from Corey, visit his blog at Afraid to Trade.com.