This is an abbreviate report, texted on my phone to my IT team, as there is no power in Malibu again.
The SPX jumped 20 points late yesterday in the runoff
To satisfy a record closing high.
In so doing the index closed right on our long outstanding target of 6118.
6118 is a Measured Move in price.
It creates equality between the advance from the Covid Crash low on March 23 2020
To the Jan 4 2022 top
And
The advance off the October 13 2022 low.
Yesterday that target was achieved… like a magnet satisfying unfinished business in the remaining minutes of the session .
Does that mean the SOX will not go higher?
Of course not.
But markets have a knack for seeking equilibrium and symmetry.
Does it mean the Matador will pull his sword immediately?
Of course not.
But he is suited up.
The SPX had 8 consecutive advance days to yesterday’s all time high Measured Move
And EVERYTHING produced negative divergences
By everything I mean the litany of technical metrics run thru in thus space yesterday…including for example the A/D line.
The Roadmap was a complete inversion yesterday.
When the first inversion pivot
Kicked in against the idealized direction it opened the door higher.
Ditto the 2nd inversion pivot.
You can see the projection fir the daily Roadmap on the private Twitter feed everyday
Posted before the open.
It often dies a stunning job of forecasting the day but
It comes with two caveats.
There are sometimes inversion pivots. But usually never more than one or two a day if any.
And. The Roadmap is not infallible like any tool.
However it is a marvelous guide in the little time I have developed it.
It is part neural networks, part fractals and part short term cycles based on moo. Aspects.
Gann often pointed to the number 69 as a key to telling the future.
On page 69 of his coded novel tunnel he talks about how to tell the future.
69 is the astrological symbol For Cancer ruled by the Moon.
The moon produced waves of irregular regularity.
That sounds like as good a description of the market as any.
If you try to hold back a wave in the water it’s pointless
She in sticks.
But if you can catch the crest
and ride the wave you will be rich
These are two different things: riding the trend and catching the crest.
Be that as it may a perfect crest, a perfect storm is circling under the suffice of 20 foot mania Pipeline waves.
For example
There is a lot of synergy in February as we’ve shown historically,
February 4 Jupiter goes direct
.
If went retrograde Oct 5 1929
In the spirit of a mirror image I’ve been making between these two periods
As well the recent Undercut low at 5773 squares out w Feb 4
Why?
Using 577 on the Wheel gives a time/ price square out on Feb 4
Clearly the Gann Panic window has inverted as well
Instead of panicky selling it has defined a Buying Panic in Mid to late January when it was the Gann crash cycle was due.
Inversion?
The month is not over but the cycle is not exerting any downside influences.
The last 8 days have been the Monster Rally we thought possible going into mid January.
That says, this feels and looks very much like Jan/Feb 2020.
A Buying climax is very alluring and tempting to chase.
That is its job.
To suck the last money in.
And that’s okay if you know the beast you’re toying with
As Gann correctly stated the fastest money is made at the end of The Cycle
Both Bull and Bear.
Even Stanley Druckenmiller
Was not immune to chasing the Buying Climax in 2000
He covered all his shorts and went long just before the top in 2000.
It cost him a lot of money but he pivoted quickly
It’s okay to guess wrong.
It’s not okay to stay wrong.
February 4 of course is also 180 days/degrees from the Aug 5 Flash Crash.
Is it possible a second rate hike in Japan will get the cheese?