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March 31, 2017 | 2021: Poised to be A Pivotal Year

Joe Russo is the Publisher and Chief Market analyst for Elliott Wave Technology, and has been practicing Elliott Wave Theory and Technical Analysis of Financial Markets since 1991.

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.

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March 31st, 2017

Posted In: Elliott Wave Technology

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