By: Jeff Cooper

Hit and Run Trading Morning Report - March 20, 2024


Today’s report is brief in front of the Fed.

Yesterday SPX broke out above an hourly 3 point trend line setting a record closing high.

We have an outside up day with a Peekaboo High continuation signal---a new closing high but not a new intraday high.

An updated policy outlook from the Fed is in focus going into the Gann Zero Point, the Spring Equinox when the Sun is at zero degrees Aries every year…Aries being the first sign of the zodiac.

This “natural” pivot ties to two of the biggest turns of the 21st century:

The March 24, 2000 bull market high and the March 23rd, 2020 Covid crash low.

20 years apart.

W.D Gann noted that 7 is the number of time and the fatal number and 7 months from the Spring Equinox is October.

This century has seen an October bear market low in 2002, an October bull market top in 2007 and the start of a crash in 2018,…not to mention the start of this vertical run in October 2023.

Gann flagged the importance of anniversary dates.

April is 180 degrees straight across and opposite October and this April we get a powerful total solar eclipse that will amplify things.

April is also the retrace rally high following the October crash in 1929.

If a mirror image foldback is playing out on this 94.5 year square-out from October 1929, April may be quite pivotal.

This April is 94.5 years from October 1929 crash.

94.5 squares April 8th the date of the solar eclipse---depicted in a Square of 9 from yesterday’s report.

Will we blow-off into this April time frame? Will this rally culminate (if it’s going to in this time frame)

With a bang…or a whimper?

The story of historic tops such as 1929, 1973, 1987, 2000, 2007, January 2018, January 2020 is that we get a bang… to the topside before the cascade.

The price action going into this March 21st to March 23rd window should offer a lot of information.

Anchoring “0” on the Sq of 9 to April 8 (eclipse) shows that it squares 349.

This was the big low on October 13, 2022.

That was in and of itself a Time/Price square-out as you’ll recall because October 13 squares 349.

Two revs of 360 degrees up from 349 is 515.

The SPX has been flirting with a closing breakout continuation over this 515 (5150) level since its first close over this level on March 7th at 5157.

So far the market has been unable to get momentum above 5150.

Maybe it was carving out these triple hourly highs prior to yesterday’s Rule of 4 Breakout?

The Oct 2023 low was 4104. So 410.

410 points to March 27th.

410 squares 517 region which the SPX has been hitting its head on since early March.

This level should sound familiar.

If you look back at yesterday’s report you’ll see the Measured Move from the October 2022 low to the July 2023 high taken from the October 2023 low projects to what has acted as resistance this March.

Anchoring “0” to October 27th (the low where this rally started in 2023) we see that if get a last ditch run for the roses 533 (5330) aligns with October 22.

if a move equivalent to the Buying Climax in 1929 plays out…IF… October 27th squares 556 (5560).

There is some good symmetry with that region as 55/56 ties to the end of the Gann Panic Zone in days from a high.
Time is Price…Price is Time Gann would note.

In the sq of 9 image above I did not show the numbers that square-out on the right side of the Wheel.


Because we are above the numbers that tie to the current price action.

They are 488 (4880) and 510 (5110).

Both of these should define support going forward.

Interestingly the last two little swing lows in March tie to this 5110 region.

Below 4880 from this junction and we should be in full-fledged waterfall mode.

In sum until support around 5100 is violated the upside door is open.

If the market is going to blow-off…if we’re going to see this thing pop its cork, then it needs to follow thru from yesterday’s breakout soon.