Gap Down Reversal At 360 Degrees From High

We showed the SPX daily below in Thursday’s report.

The  index closed just below the trend channel yesterday.

Our expectation yesterday was that instead of the pop up opens/rally attempts that have fizzled every day this week that on today’s OpEx the market would gap down and perhaps…perhaps… reverse.

If the 4970 region holds this morning on an OpEx it could open the door to a Squeeze Play higher.It may be that for the moment anyone who wanted to sell has sold. For the moment.

That means IF the market reverses there is the overhead supply is thin.

The other side of the coin is that there is beaucoup air below.

We have had an initial target of 4970 all week as that is 360 degrees down from the 5265 all-time high.

I don’t know where the market will open but if it gaps below 4970 and holds more or less below that region it opens the door to 540 degrees down which is 4838.

That ties roughly to the 4818 primary peak in January 2022.

The Wheels come off on breakage thru 4822.

It opens the door to 720 degrees down which is 4700.

That is interesting because the 200 day moving average is at 4671.

Interestingly on the Square of 9 Wheel April 19^th “points to” 490 or 4900.

Consequently if 4970 fails to act as support there is a strong likelihood that the SPX will be magnetized to 4900 in today/Monday.

It is also interesting that the next 90 degree decrement on the SPY that squares out with April 19^th is 468 or 4680.

This is a perfect hit with the 200 day moving average.

This was the potential, instead we’re getting an Opex Gap Down Reversal on Opex.

Since the SPX knifed below its 20 dma which perpetuated a knife below its 50 day I can’t help but wonder if the 200 day will act as a magnet….at some point.

This was the cascade pattern in the 1987 crash when once the 50 day line was smashed the SPX took the A Train to the 200 day moving average.

As I write the Thursday night the futes have cut their loss almost in half from down over 80 to down apx 40.

In sum breaking and holding below the SPX trend channel from October 2023 is blaring siren that a major top has been struck.

As offered above, 540 degrees down is 4838.

Another 540 degrees down (1080 degrees) below that is 4430.

That ties to the big Breakaway Gap to the topside in November 2023.

A third cube out of 540 degrees or 1630 degrees (an harmonic of the Fibonacci Golden Mean) is 4039.

Interestingly that ties to a complete give back of the entire rally from October 2023.

And we know that parabolic moves often end abruptly with a return to their point of origin.

Remarkably 400/401 (4000-4010) aligns with/vibrates off May 7^th.

May 7^th is in the heart of the Gann Panic Zone measuring from March 21^st, what I’m labeling as the orthodox high.

Do we get a “coast is clear” relief rally prior to the real event?

Interestingly May 7^th is 7 months from the October 7^th terrorist attack in Israel.

777.

7 is the number of panic.