Is the ratio about to experience a flash crash? History says it has a shot. The ratio has shown a series of flash crashes or explosions heading into the Fib ratio based off the ratio bear from 1980 to 1991. We are now approaching the 2.618 ext off that ratio bear and hitting the 161.8 ext off the 2011 low. Don’t know if it pops this week or waits until fed meeting and possible that it doesn’t do anything until the Sept 23rd fib date. Sept 23rd has popped up for me quite a bit in time studies lately.

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You can see here that the SGR is hitting the bottom of the early 90’s consolidation.

I still want to see what happens upon a retest of the yellow channel. A break of that and the blue channel would be necessary for a larger move. As hard as it is to imagine this ratio bear could extend into 2023 and fulfill the orange channel where I have a lot of major timing dominos hitting. Let’s see how it shakes out.