Validation of one of the greatest scientific discoveries/observations is now transpiring. Confirmation can be easily observed by all. The skeletalization of the Nikkei futures shows the underlying self organizing order of the Nonlinear Macroeconomy. Precise prediction is possible.
Compare the Nikkei's 25 May 2010 current exact valuation progression with the quantum fractal progression delineated in the 2005 Main Page of the Economic Fractalist. www.economicfractalist.com/
17 September 2010 was day 2x or day 54 of a 25 May 2010 Nikkei future first and second fractal sequence x/2x of 27/54 days. The x/2.5x low will occur on day 67 or 68 with nonlinear lower lows occurring during the next 13-14 trading days. This decay will occur in a precise fractal decay pattern and an inverse growth of decay pattern.
The probability - that the Nikkei's May 25 2010 daily pattern is exactly following the 2005 EF Main Page quantum growth and decay fractal patterns - patterns which predicted the ongoing nonlinear macroeconomic collapse when few linearly thinking economists had a notion and subsequently predicted the 11 October 2007 nominal high - the probability that the Nikkei future's identical quantum fractal sequence is occurring by chance alone - is zero or so close to zero that in human affairs the probability is effectively zero.
Saturation Macroeconomics is a validated new science.
These quantum patterns define the Macroeconomy, its debt dependent asset production limits, and its time course asset valuation progression. The predictive applications and the ethical considerations are considerable.
A potential ethical question, should the financial industry borrowing at zero rates and trading the Macroeconomy's predictable asset valuation saturation growth and decay curves be taxed at 98 percent on profits to prevent them from getting something for nothing.
The CRB, US long term debt, and Composite equities are all following similar fractal patterns. Natural asset valuation fractal progression was distorted by the 300 billion dollar US Federal ex Nihilo purchase of short term treasuries beginning in March 2009. Another distortion is commencing now with the Federal Reserve's purchase of an additional 300 billion dollars of US short term debt over the next 9 or so months.
The Nikkei futures represent an asset class of an industrialized nation with a 200 percent federal debt/GDP ratio, Consistent with this, the first and second fractal 27/54 day :: x/2x Nikkei futures have underperformed the US and Euro markets over the last 80-83 trading day time course. The 54 day second fractal's day 54 2x valuation high was lower than day 52 which was lower than day 21 which in turn was lower than day 8. All of the 54 day second fractal valuation lower highs on days 8. 21. 52. an 54 were lower than the peak valuation day of the first 27 day fractal.
The Nikkei future's second fractal 2.5x low on day 67 or 68 will be lower than any of the previous lows. A nonlinear drop in valuation with a disctinctive gap characterizing terminal portions of second fractals will easily be discernable.
From the Nikkei's 67-68 day second fractal low. a sharp valuation increase is highly probable. The 67 to 68 day Nikkei low will end on the 66th week of an interpolated 34-35/66 of 68-70 week first and second fractal series. This fractal series is operating for the CRB, Wilshire, and long term US debt market. Distortion of the natural fractal sequence occurred by US Central Bank ex nihilo purchase in March 2009 of 300 billion dollars of US short term debt.
From its second fractal 67-68 day low the Nikkei will rise to 2x -2.5x 54 to 68 days for the third fractal or extended tird fracal completion. The valuation rise will initially be very steep as described above. The final lower high peak for the Nikkei's third fractal will occur in December 2010 matching the Wilshire's expected lower high valuation's 98th month second fractal of a 49/98 month x/2x first and second fractal series starting in October 1998.
A massive 4/8 year :: x/2x second fractal collapse of the CRB, gold, and equity prices will occur in January 2011 as the Nikkei completes an ideal 27/67-68/54/41-43 day ::x/2.5x/2x/1.5-1.6x 4 phase Lammert growth and decay sequence.