sp500

Historically October is a very volatile month . Looking at The SP500 weekly chart we have a primary low at 768 marking the 2002 low and a major high at 1576 marking 2007 high . By dividing the range into sections we have

1/2 : 1177
2/3 : 1043
3/4 : 974
7/8 : 874

Current price action has broken all of these retracement points on the downside with the 10th October Low coming in at approx 845 just below the 7/8 point . These points are technically significant and could serve resist on the way up but the Primary driver that controls price is Time . Gann used several methods of Time including Civil Time and Plannetary Time and it was his belief that when enough Time had run out according to Natural Law only then would a change take place .

October 10th is important because it marks 6 years from 2002 low . 52 weeks from 2007 High and a Decennial Cycle from 1998 Low . With short and intermediate time cycles moving into alignment on Oct 10th it marks an important point in time . Current price is holding 58 points above Oct 1oth level and it is difficult to say whether these cycles vwhich are based on Civil Time will hold or whether there are larger plannetary influences in motion driving the current trend down that are beyond my conventional scope of analysis .

Time According to Geometric Angles.

45 Deg Angle from 2000 Top : Price is trading well below the angle which intersects 1108 on the 10th Oct . this level has been broken

45 Deg Angle from 2002 Low : Price is also trading well below this point which intersects price at 1083 on the 10th October indicating the market is in a weak technical position until this Angle is regained .

63.75 Deg Angle or 1x2 from 2002 Low : Even this angle was broken on the drive down which interesected price at 926 on the 10th Oct although in recent days it has been regained somewhat with last nights price activity marginally breaching it .

If price doesnt hold 10th Oct Lows the next point might be 790 which is 1/2 of 1580 high .






Moved from the "United States" forum. Original message number: 1215