By: Jeff Cooper

Hit and Run Morning Stock Report: November 23nd, 2022

Where Is the Market Headed Into the December Fed Meeting?

On the Square of 9 Wheel of Time & Price, 407/408 (4075) is 180 degrees straight across and opposite October 13th, the low of the year.

Time points to price, price points to time.

As legendary trader W D Gann wrote, “When time and price square-out expect a change in trend.”

I say, all important highs and lows are square-outs, but not all square-outs are important highs and lows.

It is the behavior when and where time and price balance out or square-out that tells the tale of the tape:

Speculation is observation, pure and experiential; thinking isn’t necessary and often just gets us into trouble.

In addition to the above potential square-out at 4075, there is another possible square out at at 408/409 (4085) which is square January 4th --- the day of the SPX all-time high.

So we have synchronous vibrations in the same region: 4075-4085.

The Rule of Multiples applies increasing the odds that:

1)      The SPX will likely be magnetized to this aforesaid region.

2)      That a drive to this area should be rejected.

The Elliott Wave structure for 2022 looks like October 13th marked an Intermediate Wave 1 low.

If the SPX should strike the 4075-4085 region, it may be completing Intermediate Wave 2…a corrective/countertrend leg in the Bear.

Interestingly, 412/413 (4125) is square Dec 13-14, the date of the next Fed meeting.

As you can see there is a convergence several technical and price factors in the 4075-4086 region while 4125 ties to the next Fed meeting.

Is it possible we get a Spike & Reversal on Fed Day, Dec 14?

The bottom line is  there is strong synchronicity between 4075-4085 and the 200 day moving average  and 4125 which ties to the upper rail of a rising trend channel since the October 13th Key Reversal Day low.

It’s a long time between here and December 13-14?

Is it possible the index drops  to tag the lower rail of the rising channel prior to a leap to 4125 when the Fed talks?

In sum, trade below 3875 that sticks reduces the odds of a pop to the 4100 region.

Yesterday’s Hit and Run Report showed the following daily SPX suggesting a rally. We got it.  Follow through projects to 4075-4085 with a shot at 4125.