By: Jeff Cooper

Hit and Run Trading Morning Report - February 8, 2024

The Big Kahuna

“Well it’s been building up inside of me for oh I don’t know how long.”
-Don’t Worry Baby, The Beach Boys 

58 years ago on Friday a secular bull market ended in 1966.

The secular bear market that followed lasted until the second week in August 1982… opposition February.

It was 58 years between the two sharpest crashes in U.S. history---1929 and 1987.

On the Square of 9 Wheel 58 is 180 degrees opposition late January.

287 months ago stocks struck a bull market high in March 2000.

On the Square of 9 the number 287 squares Feb 12.

So we have some synchronicity between the February 1966 high, the March 2000 top and this week.

It must be said that the NAZ peak in 2000 was comparable to the DJIA peak roughly SEVENTY years prior in 1929, both leading to losses of more than 80%.

Yesterday the SPX grazed the psychological 5000 level.
These big round numbers exert their influence.

The 1000 DJIA level lasted from 1966 into 1982 other than a brief failed attempt to clear 1000 in January 1973.

The NAZ closing high in March 2000 was 5048.

I can’t help wonder  if we don’t get a Spike & Reversal pattern with the SPX spiking to 5030-5050 and reversing, synchronous with the 5048 closing high in the NAZ in 2000.

Moving the decimal point  on the SPX and using 503-504 we see they vibrate off mid-February.

A weekly SPX shows the significance of this 503-504 region.

There is an alternate count which suggests after a sharp decline a Final Fifth wave to 5500 plays out.

The significance of this 503-505 region is walked thru by Hit and Run member Greg Schreacke who posted the following yesterday:

4 Cubes (4 X 540 degrees) up from 3491 low is 5053.

1260 degrees up from the recent 4104 low is 5050.

February 8/9 squares with 5050 (505).

I will add that 503 (5030) squares the number (for the year) 1929.

Today is day 104 from the October 27th low.

In 1929 the DJIA blow off started around May 29th.

It culminated 99 days later on Sept 3.

We know this story does not have a happy ending.