Fractal Skeletalization is hallmark of a final saturation period before a major valuation directional nonlinear change.
Add 5 trading days to last week's post: 8-10/18-20/11 of 18-20 days.
Growth for equities and commodities has likely been completed; now massive decay will occur within the next 9 trading days in a 4/8 of 8-10/6-10 day decay fractal.
The Wilshire is completing a 97 month 14/35/28/23 :: x/2.5x/2x/1.6x growth and decay sequence which is a second fractal to a 47 month first base fractal beginning in October 1998. The interpolated fractal series is an extension of a US 70/140 year first and second fractal series beginning in 1788-89. Debt expansion has allowed this extension first via the internet-PC-software-on line business rapid evolution explosion and second via the Financial Industry-Government-Federal Reserve-Real Estate Industry de facto collaborative real estate and derivative debt exponentialization.
Further lower high time extension to this point has been qualitatively supported by ex nihilo debt purchases and intercountry debt purchase agreements by central banks. All fabricated debt extension is under the umbrella of a qualitatively and quantitatively self balancing macroeconomc system.
Historians will look back on this July 2010 time period and find that the financial industry and wealthy elite have positioned themselves very well and profited greatly before the collapse. The extremes of wealth distribution are akin to France in the late 1780's. The citizens have been indebted and are more dependent than ever on week to week earnings from labor to survive and service their debts. With oversupply and high unemployment, citizens will be ready to work longer and work for less. The elite have accumulated the citizens' sovereign debt and their mortgages and can live without need for labor or useful activity. The financial elite have crowded out or have defacto minimized real economic investment and activity by their manipulation and usurping of entire monetary system for their personal aggandizement and their promotion and use of the derivative electronic money system which includes equities and the repetitive trading of equities.
A historical second fractal nonlinear devaluation event is at the threshold for equities and non US debt commodities.
The 28/23 month portion of the Wilshire's 14/35/28/23 month 97 month second fractal contains an interpolated 35+/89/88 of 89 week decay sequence that includes its predicted 11 October 2007 nominal valuation peak. Within this decay sequence is an interpolated 35/83/81 week :: x/2-2.5x/.2-2.5x final decaying saturation growth3 phase growth fractal. The third 88 week fractal of the 35+/89/88 of 89 week decay fractal is composed of two subfractal series 7/16/19 weeks and 9/23/24 weeks with a final high on the 12th week of the current 24 week third fractal or on 26 April 2010. this also as the 81st week of the 35/83/81 week decaying growth fractal series.
The 24 week third fractal of the 9/23/24 week series is composed of two subfractal decay series: a 14/30/34 day decay series and a 8-10/18-20/11 of 18 to 20 day decay series (y/2-2.5y/2-2.5y). The 8/20/10-11 day decay sequence is observed easily in the NIKKEI futures with the defining nonlinear break between day 16 and 17 of the second fractal.
The Wilshire's 24 week third fractal of the 9/23/24 week series can also be mathematically grouped into a 8/17 of 18-20 week first and second fractal series which correlates to gold''s (XAU) weekly and daily series. (see below)
This 8-10/18-20/11 day fractal series contains the last three phase growth series for the Wilshire which will be interpolated in the 35/88-89/87 of 89 week decay sequence. Observe the lower high daily 8/20/11 day skeletalization of the Wilshire.
Fractal Skeletalization is hallmark of a final saturation period before a major event.
The great crash, the great nonlinear devaluation of equity, gold, and commodities is expected within the next 9 trading days. Likewise, a historical low, a 150 year low for US long term interest rates will occur within this time frame. TX and TYX are following an inverse 15-16/26-40/18 of 27 days growth fractal with the third of the third growth phase currently operative.
Qualitatively money exiting the equity and commodity markets is flowing and will accelerate its flow into US debt instruments in a nonlinear fashion within the next 9 trading days . The third fractal of 18 days is composed of a 5/13/4 of 10-13 day series which matches the 8/20/11 of 18-20 day Wilshire decay fractal.
Gold (observe XAU's fractal pattern)is completing a 27-/65 of 67 week fractal. It is likewise completing an18/45 of 45 month fractal and a shorter 8/17 of 18-20 week fractal. Synchronized second fractal decay is expected within the next 9 trading days.
A massive second fractal synchronized nonlinear ending is in ante room just out of site for global equities and commodities and gold..
The world has created global GDP, housing, commercial real estate, construction, and entitlements via debt expansion. Now that 50 year unbalanced credit expansion, obligated debt, and excessive and overvalued supply will have its correlative qualitative self-balancing correction in a very simple, very mathematically precise quantitative fashion according to the simple empirical laws of the new patterned science of Saturation Macroeconomics.