A look at the S&P500 Emini Express,
Mr Gann is reknown for his squares. Fixed squares like 52, 90 & 144. He also promoted the use of squares of the high, low or range.
My chart below is a great example of square of the range. 2007 high to 2009 low = 921 points.
My data (which can vary from provider to provider) has the range squaring out perfectly on 20/2/2020 and pulled up just 31.25 points (1/16th) shy of the price target. 3 x Price in time.
I do not profess to know where this is going but have noted potential stops for the Emini Express. Nice little cluster around the 2011 lows which would also work nicely with the 2018 low price and the range to the top (1084) as price.
My comment to people over the last few years has been "If you think the GFC was bad you ain't seen nothin yet". Been looking like a goose for some time.
I have been expecting a big fall in prices and economics based on the 90 year cycle. What fascinates me with these things is you have no idea of what is going to happen but so often along comes the trigger around about on time.
As the only index data I have going back 90 + years is DJIA I use it as reference. 3/9/1929 to 13/11/1929 low it dropped 49.39% in 51 T days or 71 Cal days.
It managed to put in a decent rally back to 50% of the drop but that ended 154 days later on 16/4/1929 and it was all down hill from there. 1039 days from the top saw the final low. The drop was 89%.
The Emini Express is quite a bit ahead of schedule. Although it is running 162 days behind the 1929 start date so perhaps this rapid fall is price catching up with time. It is hard to see it running down for anything like 1039 days. Time will reveal all.
I do think it rather ironic that the election of Trump saw a near 60% gain in prices and the run came to an abrupt halt pretty much on Presidents Day.
There are going to be some extraordinary opportunities down the track for those who keep their powder dry. Look to the past to see forward.
Best to all,
Woohoo.
(20min delay)