Originally posted by jarek

Maybe in the current environment we needed not just 3 drives to the top but something like 3.5?

It is very interesting to note that the push to the last top in ES was equal to exactly 61% of the average length of the previous 3 drives:



Is somebody playing games or the manipulation adjustments should also be calculated using the Fibonacci sequence? :-)

jim...at the risk of seeming impolite... my experience has been that the markets have always been manipulated and i suspect they always will be.HOW they are manipulated shifts over time... it is part of our job as traders to know that... before computers there were public trading rooms everywhere where we would sit for hours and TAPE READ.. one of my greatest trades ever was in a stock SIMMONDS PRECISION.day after day by watching the tape you could see block accumulation going on...so i accumulated a block also... one day it was halted... take over announced... reopened up 20 points...on a 30 dollar stock...when it was later found out that sp was that first of many stocks that IVAN BOESKY had manipulated... he went to jail and had to give the money back.... i got to keep mine... the point being..AT THAT TIME...tape readingwas the route to see the manipulation....years hence, i believe it will be found that the advent of bearish etf's,which the public finds impossible to short,has played a major role in this market rise... NOTE that you do not hear a single whimper about the bear raids in bearish etf'ssimilar to the screaming outrage of last fallabout the bear raids in stocks...

in other words... it used to be that when a bear market was coming to and end, you would see relentless block accumulation. in late 81 and all during 82 there were block after block of million shares.on large upticks... then the stock would selloff so the specialist could cover his short position..it was pure manipulation.... in a market that did not trade over 30 million share a day....but with the advent of bearish etf's,the big traders can accumulate large blocks in small bits on downticks under the radar knowing they are going to take market higher eventually by being hedged with bearish etf's.