Orthodox High

I am counting March 8^th as the orthodox high on the SPX.

The index topped that day at 5189 and left a Key Reversal Day.

The breakout over 5189 to 5264 was brief.

The false breakout was underscored by a large range outside down day on April 4^th.

Connecting a Tops Line from the March 28^th actual print all-time high and the April 4^th high produces an important line.

Yesterday the SPX pushed above that line but tailed off.

It also left an N R 7 Day, the narrowest range in 7 days.

These contractions in range are typically followed by an expansion in volatility within a day or two.

Tuesday’s high  of 5200 with a close of 5187, essentially tested the March 8^th orthodox high of 5189.

Is it possible this is a Right Shoulder of a Head and Shoulders Top?

Yes it is.

Breakage back below the 50 day line and Monday’s gap indicate we may be entering a powerful 3^rd wave decline.

Wave 1 down was the drop into April 19^th and corrective wave 2 would be the countertrend rally into this week.

Breakage below Friday’s opening gap validates this idea.

Starting from the March 8^th low I paralleled a declining trend line off the Tops Line.

Notice that the April 19^th low Pinocchioed the bottom of the channel.

Currently the bottom of the channel ties to that same level…4950.

When 4950 is taken out we should be in the heart of a 3^rd wave drop to the 200 day moving average

Now at around 4710.

In sum, anchoring “zero” on the Square of 9 Wheel to March 28^th puts the eye of the Gann Panic Window squarely at May 17^th. This is the anniversary of the NYSE founding 232 years ago.

232 is 180 degrees straight across and opposite March 28^th, the ATH.

1792 squares out with March 6, June 6^th, and early September.

March 6^th and early September define the low of the Great Recession (2009) and the high prior to the Great Depression.

June 6^th is going to be very pivotal this year.

As you know, June 6^th aligns with 666, the low SPX price on March 6, 2009.

June 6^th also aligns with the number 62.

62 years ago is 1962.

The market crashed into the end of May with an undercut low in June…mirroring the crash in 1929.