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Sir Surf City had a good point that it matters where you connect X.

X can be connected higher on the Dow. On the chart above, is the highest point X can be connected though because one of the stipulations is that B goes up to the 61.8% retrace. If I connect X higher than this, then the B retracement doesn’t get all the way to the 61.8% retracement.

Sometimes there’s some overshoot and extensions through the fibs like false breakouts on chart patterns, so the Gartley isn’t a perfect precise predictor of price but does allow for some play…

What does all this mean to me? I think since no matter where the X is on the S&P, AN S&P GARTLEY IS NOT COMPLETE, so the S&P may be looking for higher, even though 2000 is a nice psychological point.

Both the Dow and S&P could go higher and both still have perfectly legit textbook Gartleys… and many of the Gartley traders will be looking for higher before heavily shorting….