This post is part of several other posts: part 1 and 3, can be found here and here.One of my readers of my blog pointed out that a potential “megaphone” pattern was developing. Accordingly, this is one of two change of trend patterns used by Alan Andrews, who developed the Andrews pitchfork. A megaphone forms after a long uptrend, according to the following price pattern:
- 1. A higher high 2. A higher low 3. A higher high 4. A lower low 5. A higher high that tops out at the resistance trend line drawn from 1 and 3.
For for the SPX that is:
- 1. 1991, 2. 1904, 3. 2019, 4. 1820, 5. =2040ish?
It would exactly be where major  equals major , measured from major . It would also hit exactly the 1.382x extension of Primary I (666->1370), measured from Primary II (1074), which is a typical 3rd wave extension, and it be close to the 4.000x extension of Major 1, measured from 2.
The Dow, Transports and the Comp all have the same pattern nearly complete too. Below I’ve only given the DOW.