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The 26-29 September Equity Devolution and the Unified Long Term Fractal Pattern Construct for Saturation Macroeconomics

For many years an observational  search has been for a final unifying quantum fractal decay pathway that will conclude the 1982  34/85 quarter (3 month time unit)SPX first and second fractal series which is timed to conclude in October thru December of 2011.

This search has ended in a larger construct of the US macroeconomic system and its asset(s) valuations that provide insight into the future. The following traces known and expected economic asset valuations froom 1789 to 2032. The pathway is consistent with what is known; what has happened and relies on pasy ubiquitous recurring patterns to foretell the causal deterministic future....


From 1982 to 1990 there are 34 quarters forming the first fractal.


The second fractal of an expected 2.5x length or 85 quarters starting in 1990 follows a 17/34/34 pattern which takes the SPX to its third fractal 34 quarter high on 2 May 2011. The 84th quarter of the expected 85 quarters contained the months July. August, and September.  October, November, December contains the 85th quarter.


This small 1982 34/85 quarter 9/22 year first and second fractal series is part of a larger US debt-money-stock/equity system of currently 70/154 years series starting in 1789.


The first US equity fractal occurred from 1789 to 1858 and was 70 years in length.

The second of 134 years is composed of two subfractals.

The first subfractal is 75 years in length and ends in 1932.

The second is in the form of  an 18/42/43 year decay fractal with nodal lows in 1949, 1990, and 2032.


The SPX crash of 1987 was near the terminal portion of the 42 year second fractal ending in 1990 and represented second fractal characteristic terminal nonlinearity.  The elevation of the valuation of the equity class beyond its underlying slope line from 1949 to 1990 was secondary to a massive increase in the debt-money system from 1982 to 1990 with the combination of trending lowered US interest rates, massive US government deficit spending, and the increased use of unregulated derivatives.


The terminal 9 years from 1982 to 1990 of the second 42 year fractal starting in 1949 served as the base fractal for a concluding 9/22/22 year decay fractal that will end in 2032 and will well approximate the expected end of the 1789-1858 70 year first fractal’s expected 175 year second fractal (2.5x the base) ending ideally in 2032.


One pathway to 2032 from 2011 would reasonably be 7-/16 years with an equity nodal low in 2016 and 13-14 year final high in 2029-2030.  Bad debt liquidation and experimenting with austerity will be short lived occurring from 2011 to 2016. Thereafter accommodative debt expansion is expected from the years 2016 to 2029-30.  The accommodative system could maintain equity valuation until 2031 or 2032 with a sudden nonlinear crash similar to 1987 but on a much greater in scale.




The final daily SPX Wilshire pathway to the 1982  34/85 of 85 quarter  2011 low follows the following daily sequence:  11/24 of 28/22-28-32/18-12-8 days. The hyphated days are paired 22 with 18; 28 with 12 and 32 with 8 for a total of 39 days of the combined 3rd and 4th fractal length.


The final SPX pathway of 36 quarters (1734/36) from the March 2003 low follows a 18/44/45 month decay fractal:

The final 45 months are composed of a 8/20/17 of 19-20 month decay fractal.


From the March 2009 low 3 weeks are integrated from the preceding decay fractal:


21/52/2x/1.6x weeks


The 2x/1.6x 3rd and 4th fractals are self assembled into a 11/28/22/18 patterns with 3 week from the preceding 52 week second fractal integrated with the following 10 weeks to make a total base fractal of 11 weeks. The 27 week second fractal of the 11/28/22/18 week pattern end on a 30 week low with  3 weeks integrated into the following 22 week third fractal.


The 18 week 4th decay fractal consists of a 3/currently 7 of 8/6/4-5 week fractal.


The total length of first and second fractals 21 +52 = 72 weeks

The total length of the third and fourth fractals = 11 +27 +22 + 17-18 weeks =74-75 weeks. The 1.6x of the base fractal of 21 weeks yields an extra 2.1 weeks beyond the 72 weeks of the first and second fractals.



The final decay fractal 31/78/76 days :: y/2.5y/2.5y.


The final fractal pathway to a 2011 low started on 7 March 2011, 8 trading days before the March 2011 low. Decay beginning in growth.


The decay is integrated with 24 days of going forward for a total first fractal length of 31 days.


The next low is in 78 days 2.5x with an interday low on day 79 9 August 2011 for the Wilshire.


The final 76 day fractal will be a 11/28/22/18 days which elegantly match fractally  the 11/28/22/18 weeks of the final 3rd and 4th fractal of the 21/52/(11/28/22/18) week fractal series from the March 2009 lows.


The 18 week decay fractal is interpolated into a 16/38/38-39 day :: decay sequence starting on 18 July 2011. The 18 day base is formed by a 3/6/6/4 day x/2x/2x/1.5x with an interday low on day 19 for a 3/6/6/5 day x/2x/2x/1.6x fractal sequence.

Because of this interpolated fractal  has a 16/38/32 :: x/2.5x/2x projection as its fianl lower high , the final evolution to the 85th quarter 2011 low is as follows:


The final daily SPX Wilshire pathway to the 1982  34/85 of 85 quarter  2011 low follows the following daily sequence:  11/24 of 28/22-28-32/18-12-8 days. The hyphated days are paired 22 with 18; 28 with 12 and 32 with 8 for a total of 39 days of the combined 3rd and 4th fractal length.