Once I had a dollar, once I had a dream,
now all the work is a bein’ done
by a big ole’ machine
—Alison Krauss and Union Station,
Dust Bowl Children
Fractal, per my 1971 edition Funk & Wagnall: n, a geometrical structure that has a regular or an uneven shape repeated over all scales of measurement and that has a dimension (fractal dimension) determined according to definite rules, that is greater than the spatial dimension of the structure.
Dictionary writers love turgid prose. All it means is that a pattern repeats itself within a pattern. Think Russian Matryoshka nesting dolls and you’ve got it.
The stock market, in E-Wave terms, is a fractal. Patterns that can be seen in the daily charts will also appear in smaller time frames. The smaller time frame charts often anticipate the pattern in the larger time frame. This is especially so when the larger trend is an impulse wave. We may be witnessing a first impulse wave followed by an irregular corrective wave in the daily chart that is unfolding in the 60 minute chart, which would anticipate the next strong impulse wave down, setting the stage for the primary direction of the market to turn down:
Dow Jones Industrial Average Daily Chart
Dow Jones Industrial Average 60 minute Chart
Note that the 60 minute chart has the same sequence as the larger daily chart–an impulse wave 1 down, followed by a three wave correction in wave 2. This is a typical sequence in the early stages of a large move in one direction, in this case down. If the 60 minute pattern does not go above the top of the larger wave 2, which peaked November 3, then the next wave down should be a larger impulse wave. This will be worth watching for anyone who still owns stocks. Third waves, even in small degrees of trend can be dramatic. In the case of a Grand Supercycle top, we may be staring at prices that will not be seen again by anyone alive today.