1929 Model Perspective
Stock markets do not always follow a perfect Fibonacci framework. Utilizing the Fibonacci tool as a comparative measurement device provides insight to Market Maker’s intentions.
Stock charts courtesy of StockCharts.com.
March 3, 2025
On February 28, 2025 the Fear and Greed Index hit a low of 15 during the trading day. Over the last two years when the index dropped between 14 and 17 stock markets continued to move higher. To put this in perspective with 1929 vs 2025, the following charts align with current calculations. The 1929 chart shows a 300% move based on the May 1929 decline structure. The current Dow structure has moved 200% based on the 2022 decline structure. In this case the Dow is in a position similar to where it was in July 1929 and would be expected to move above 50,000. This will cause retail investors to chase stock markets and should be monitored closely for any significant change in direction.
