The Magic Of The Square Of 9 Wheel Of Time & Price

“Underscoring the significance of 4070 (407 SPY) is that today, April 12 ‘points’ to/aligns with 4070 (407, on the Square of 9 Wheel)…it would not be surprising to see the SPX magnetized to the 4070 pivot.”

We wrote the above in Wednesday morning’s Hit and Run Report.

 We had been targeting and important turning point for April 11 for some time.

April 11 is 180 degrees straight across and opposition October 13, the so-far low of the bear market.

Fascinatingly, 349 (3490) is the October 13 low.

In other words, there was a Time/Price square-out on October 13 that defined a low that still holds six months later.

Likewise, 349 squares out with April 11/12.

As the chart from yesterday’s report shows, this time factor dove-tailed with well-defined resistance -- a declining tops line connecting the August and February highs.

Notice that these important highs were 180 degrees apart as well. Both perpetuated significant drops.

Following Wednesday’s CPI, the market rallied sharply with the SPX popping 35 points and the SPY striking 412.17.

The last thing on Mr. Market’s mind seemed like a trip to 407 SPY.

Yet with an hour and a half to go in the session, the SPY plunged to 407.44 as shown below.

You can’t make this stuff up.

This is the undeniable power of Gann’s Law Of Vibration in keeping with the Square of 9.

Magic or magnetism, it is the best trading tool on the planet.

An updated daily SPX shows that the index left a Soup Nazi sell signal on Wednesday.

This is a new 20 day high that reverses back down the same day (or the next day) below a swing high that is at least 4 days prior within this 20 day lookback.

The purpose of the 4-day interval is to prevent against a continuation move versus a “test failure.”

The SPX left a Combo sell signal on Wednesday: a Soup Nazi and a Key Reversal Day.

Based on the structure of the SPX from its January 4, 2022 all-time high, there is a strong likelihood that the stock market is putting in a significant top over coming hour/days… if it has not already done so.

Breakage below 4070 opens the door to a 20/50 Bowtie moving average in the 4020 region.

Breakage below 4000 validates the idea that the SPX is in the heart of a powerful 3^rd of a 3^rd Wave decline and opens the door to 3900.

Pulling back the lens to the weeklies shows a trend line connecting last October’s low and the March 2023 low ties to the 3900 region in April/May.

If 3900 fails to act as support, the expectation is for a drop to new lows below 3490.