On the Square of 9 Wheel of Time & Price, 407/408 (4075) is 180 degrees straight across and opposite October 13th, the low of the year.
Time points to price, price points to time.
As legendary trader WD Gann wrote, “When time and price square-out expect a change in trend.”
I say, all important highs and lows are square-outs, but not all square-outs are important highs and lows.
It is the behavior when and where time and price balance out or square-out that tells the tale of the tape:
Speculation is observation, pure and experiential; thinking isn’t necessary and often just gets us into trouble.
In addition to the above potential square-out at 4075, there is another possible square out at at 408/409 (4085) which is square January 4th — the day of the SPX all-time high.
So we have synchronous vibrations in the same region: 4075-4085.
The Rule of Multiples applies increasing the odds that:
1) The SPX will likely be magnetized to this aforesaid region.
2) That a drive to this area should be rejected.
The Elliott Wave structure for 2022 looks like October 13th marked an Intermediate Wave 1 low.
If the SPX should strike the 4075-4085 region, it may be completing Intermediate Wave 2…a corrective/countertrend leg in the Bear.
Interestingly, 412/413 (4125) is square Dec 13-14, the date of the next Fed meeting.
As you can see there is a convergence several technical and price factors in the 4075-4086 region while 4125 ties to the next Fed meeting.
Is it possible we get a Spike & Reversal on Fed Day, Dec 14?
The bottom line is there is strong synchronicity between 4075-4085 and the 200 day moving average and 4125 which ties to the upper rail of a rising trend channel since the October 13th Key Reversal Day low.
It’s a long time between here and December 13-14?
Is it possible the index drops to tag the lower rail of the rising channel prior to a leap to 4125 when the Fed talks?
In sum, trade below 3875 that sticks reduces the odds of a pop to the 4100 region.
Yesterday’s Hit and Run Report showed the following daily SPX suggesting a rally. We got it. Follow through projects to 4075-4085 with a shot at 4125.