Just in the nick of time I looked at his hand.” Paul McCartney, Junior’s Farm
Readers of the Hit & Run Report know that 3860 SPX is a number we’ve had on our radar all year.
Yesterday, the SPX struck an all-time high of 3861.
This morning it is gapping down 30 points.
Succinctly 3861 is a fractal of the 386.10 DJIA intraday all-time high from September 3, 1929.
The DJIA dropped to 40.56 by July 1932, a Fibonacci 34 months later.
It will be interesting to see where the market is 34 months from now.
Earlier this week we wrote about 2021 being a potential year of destiny based on the Fibonacci sequence.
2021 is 89 years from the 1932 bear market low.
2021 is 55 years from secular bull market top in 1966.
2021 is 34 years from the 1987 crash.
2021 is 21 years from the 2000 bull market top.
2021 is 8 years from the 2008 crash.
2021 is 5 years from the major 2016 January low.
This week is exactly 3 years from the January 2018 top followed by 12% air-pocket in 10 trading days!
January 2021 is basically 2 years from the Christmas Crash low in 2018.
January 2021 is 1 year from the primary pre-crash high in January 2020.
There are a lot of booms and busts that show synchronicity with this sequence.
Valuations are stretched. Euphoria is rampant.
Wall Street is in denial as to Main Street.
Could the time/price harmonics be pointing to a day of reckoning?
W.D. Gann wrote, “Vibration is fundamental; nothing is exempt from this law; it is universal, therefore applicable to every class of phenomena on the globe. After years of patient study I have proven to my entire satisfaction, as well as demonstrated to others, that vibration explains every possible phase and condition of the market.”
I have proven to myself and subscribers that Time & Price seen through the lens of my Square of 9 Wheel are the Lennon & McCartney of the market. When they come together powerful vibrations play out.
Nicola Tesla wrote, “If you want to find the secrets of the universe, think in terms of energy, frequency and vibration.”
What Gann called the Law of Vibration revolves around the idea of repetition, which is cycles, and the idea that numbers are attracted and repelled by historic anniversary DATES and PRICES.
At major turning points, time and price become one and the same; they balance out or square-out.
Since July 8, 1932, the DJIA has had a remarkable run, advancing from 40.56 to 31,272 yesterday.
In 32,339 days or 88 years 6 months (1062 months).
I have a tool called the Square of 9 Calculator, or Wheel of Time & Price, which allows me to determine when time and price “meet.”
Let’s take a look at the DJIA/SPX highs this week through the lens of the Square of 9.
Anchoring “zero” to 88 (for 88 years, 6 months from July 1932) points to September 3.
Red is 88
Blue is Sept 3
So 2021 shows it's synergistically related to the 1932 low and the date of the 1929 high.
Drilling down to months—we are 1062 months from July 1932.
On the Square of 9, the number 1062 vibrates off late January 2021.
Red is 1062 months
Green is late Jan
Above I mentioned we are 31,272 days from the July 1932 low.
Moving the decimal point of the number of days (31,272) to get 312 shows that 312 vibrates off the DJIA 386 high in 1929.
Purple is 312 for 31,200 days
(Note that purple also aligns with 386 DJIA price high in 1929)
Blue is mid to late Jan
Maybe something, maybe nothing, but we have possible time/price synchronicity between the number of days from the July 1932 low to yesterday with the 386 price high in 1929.
Is relating today’s SPX level (3860) to that of the DJIA 90 some years ago (386) voodoo?
I think not as I have seen these correspondences or vibrations occur many times.
For example, the DJIA bear market low in 1982 was 769, while the SPX bear market low 20 years later was 768.
Conclusion. The SPX gapped up to a new high to the key 3860 region on Wednesday from an 8 day flat or line formation.
It traded all day Thursday in the same region, leaving an NR 7 Volatility Contraction Day. This is the narrowest range in 7 trading days.
Often these contractions are followed soon by an expansion in volatility.
This morning we’re getting a gap down of 30 SPX points… pre-market — into the open gap from Wednesday.
If the open gap is offset today on a sustained basis, it triggers a Jump the Creek sell signal.
That’s just a little daily signal, but all big declines have to start with one step.
Often this occurs with a Breakaway Gap.
If Wednesday’s open gap is offset on the Friday weekly closing basis, it opens the door to lower prices.
In turn, breakage below the aforesaid flat line formation, i.e., below 3775 in coming hours/days represents a failure at the 20 day moving average.
The SPX gave two successful undercuts of its 20 day moving average in the past month.
The bears are hoping for a failure at the 20 day — that the 3rd time will be a charm.
