So in order to share the conclusions of my analysis I wanted to also share my process so our followers can learn how I got there as well. Starting with the templates that I always leave as a reference on my desk this is the pattern that I am seeing in the market.

So starting with the Late July 2011 High of 1350 I measured down to the major swing low of Early October and labeled it X-A.

I saw the first measurement that happens exactly in these harmonic patterns which is a B retracement of 78.6 of the Length of X-A.

It is always good to see this retracement hit exactly because the next measurement of C was also surprisingly exact as well. Looking at the Length of A(October swing low) to Nov Swing High B, C pulled back exactly 6.18%! This is a very good secondary measurement indicating that the next measurement of D will have VERY important potential trend reversal points.

Using now two differnt harmonic View points (X-A) and (B-C) with very exact harmonic movements in regards to the Fibonbacci and Harmonic series, The D point is then projected higher. So the first projection is 1.27% above X, using X-A as the base measurement and this is strengthened as a possible turning point when it lines up close to 2.00 or 1.618 projection higher from the B-C base measurement. As indicated with the green arrow on the chart you can clearly see that the April high hit exactly on the 1.27(x-a) and 2.00(B-C). A very good set up for a trade that I missed. But I dont think it was the final high.

The next level higher noted as D* has a better projection of a possible final D turning point. D* is a perfect 1.414 of X-A and 2.24 of B-C. Addtionally D** fits even better as a potential turning point for a few reasons.

First, this level lines up with two Phi extensions from the X-A and B-C base points. I have found in Fibonacci measurements that have .618 and derivatives or extensions of are the most important points to pay attention two. This is a Sacred Number and there are many scientific disciplines that prove this ratio has universal importance in world around us. Additionally I am reserving this zone as denoted in red, as the final top area because it also sits slightly below the 2007 high and If you measure the 2000 -2003 as well as the 2007 to 2009 both have .886 retracements that lie in this box at 1483 and 1474 respectively so from multiple using multiple base measurements the stars are aligning so to speak at this zone being a very highly probability major turning point for the over all market. my year end target of 1483 is still in play and I have also pinpointed two exact turning points that I think will be very significant: 1463 & 1518.

by @AlexKOTM