The Ubiquitous Lammert x/2.5x/2x Fractal Pattern: Ecce the Skeletonized NASDAQ 8 August 2011 3/8/6 day :: x/2.5x/2x Growth Fractal
Global Equities are undergoing devaluation as the global money supply contracts. Exiting money is flowing into US sovereign debt notes.
But within this 1 and 2/3 quarter (5 month) collapse and larger time unit fractal decay,, smaller time unit fractal growth will occur.
Observe the NASDAQ's 3 phase growth in decay fractal starting on 8 August 2011 of 3/8/6 days. (A x/2.5x/2.5x extension is possible or a 3/8/6-8 day fractal.) An observable nonlinear break occurs after day 6 of the second 8 day fractal between 2x and 2.5x. This nonlinearity characterizing second fractals was described in the Main Page of the Economic Fractalist in 2005.
This break can also clearly be seen on the minutely ten day chart of the Wilshire.
The progression of asset valuation curves is purely an available money phenomena. Equities are collapsing because the global money supply composed of money and debt is collapsing,
Global equities will continue their nonlinear quantitative fractal patterned devaluation the week of 29 August and US long term debt will rise in value to 150 year low interest rates.
The base decay fractal for the 2011 decay sequence is contained within the terminal third and fourth fractals portion of the Wilshire's 18 April 2011 4 phase :: 13/32/26/20 day fractal series.
Note that day 20 of the 4th fractal of the 13/32/26/20 day series is the low on day 8 of the second fractal of 3/8/6 day counter growth fractal. The natural decay point for the 4 phase fractal has been incorporated or interpolated into a smaller countertrend growth fractal.
The two possible base fractals for the decay sequence are:
I. a 15 day base fractal starting 27 June
II. a 16 day base fractal starting 18 July
If the 27 June alternative is the operating base sequence, a decided nonlinear lower gap will occur within the next 7-8 trading days with the next low at the end of the time frame beginning the next counter growth series.
If the 18 July 16 day base is operative the next low will come in 4 to 5 trading days with also a nonlinear lower low but without the degree of devaluation in the first alternative. A counter growth fractal series will occur for 15 or days and the 18 July base would have its major devolution in the last week of September, first week of October.
Looking at the valuation curve in a time unit of quarter years, all of these daily smaller fractal growth (growth in decay) series will be lost within the larger time unit and the quarterly unit projection viewed as nonlinear.