“Somebody’s Heine
I crowdin’ my icebox
Somebody’s cold one
Is givin’ me chills
Guess I’ll just close my eyes.” Say It Ain’t So (Weezer)
One of the most important prophetic events of our time may be playing out right in front of our eyes.
All-out war between Israel and Iran.
A perfect storm is brewing.
We have already seen one pandemic.
We have mounting civil unrest and the beginning of martial law.
As well the expectation is:
a new New Madrid earthquake. The original New Madrid earthquakes were between December 1811 and Feb 1812. It was the largest ever on the continental U.S.
Seismic activity and tsunamis.
And economic turmoil.
The New Madrid earthquake caused a tsunami in the Mississippi River which roughly divides the east and west.
Very symbolic today.
It changed the course of the Mississippi River.
Divides the country and changes the course of the country?
As well, the U.S. declared war on Great Britain on JUNE 18, 1812
In August 1814 the British burned the White House.
So in real and esoteric terms the White House we know today “stems” from the War of 1812.
It was rebuilt in 1817. That is 208 years ago.
208 points to February 19th, so far the all-time high on the SPX.
Using 1812 as a year on the number grid on the Sq of 9 Wheel aligns with 213.
With 1813 being 213 years ago. This form an potentially important vibration/synchronicity.
Israel was founded in 1948. That is 77 years ago.
Gann students know the significance of “7”. It refers to a time of Panic.
77 is of course double 7’s.
7 squared days from the high in 1929 and 1987 the market crashed from the 7th week from high into the 8th week.
This year the market crashed 7 weeks from the February 19th high.
Was that A crash or The Crash?
If the SPX has just carved out a Secondary High another crash may be on the table.
Last week we showed the following SPX showing the plunge below an Ascending Wedge in February and potential for breakage below another Ascending Wedge.
That played out on Friday.
Let’s zoom in to the SPX to see the break.
For those who think this is a one off, consider that Japan imports 100% of its oil. It’s priced in US dollars.
When it spikes massively in price, it unwinds the Jen carry trade in a hurry.
The last major unwind was in the summer of 2008 when oil spiked to $147.
This was ‘coincidentally’ just before the Lehman Crash.
As to Israel’s birth 77 years ago, 77 on the Square of 9 points to June 21st, the Summer Solstice.
The interpretation is this June is significant for Israel.
This June 21st is 4 1/2 years from the Great Jupiter/Saturn Conjunction on December 21st, 2020.
This is 1620 degrees, A Fibonacci fractal.
The Dec 21/2020 Jupiter/Saturn conjunction was the tightest Jup/Sat Conjunction in 800 years.
The tightest/strongest conjunction prior to that is believed to be the Star of Bethlehem.
You may recall that at that time in December 2020 we noted that degrees forward and backwards defined important turning points.
For example exactly 270 degrees/days prior to Dec 21, 2020 was March 21, 2020, marking the Covid Crash low March 23, 2020).
720 days/degrees before Dec 21, 2020 was the Christmas Crash inn 2018.
360 degrees following December 21, 2020 marked the high prior 2022 Bear Market.
To mention a few turns.
The Islamic regime came to power in Iran with the revolution 46 years ago in 1979.
Remarkably 77 and 46 align on the Sq of 9 Wheel.
77 is one full rev or square of 360 degrees up from 46.
There is lots of interesting condemnation coming out of Russia since Israel’s attacks on Iran.
Bible prophecy in Ezekiel 38 and 39 makes clear references to Russian, Turkey and Iran working together to attempt to destroy Israel after Israel regains its status as a nation in its original homeland.
Russia seems to be aligning with Iran over this latest battle.
Markets rallied initially after the SPX futes were down 100 points before Friday’s open.
By the time the opening bell rang the loss had been cut to down only 45 points.
Following a first hour low the SPX rallied into the open gap and down only 20 points mirroring the usual assumption that Mid-East tensions would fade before markets reopen today.
As I write this Saturday night, I obviously have no idea how we’ll open, but oil fields in Iran are burning and the Iron Dome in Israel letting missiles through.
The realization that the crisis may not de-escalate quickly and could spiral is reflected by the breakage below the Rising Wedge and our cycle work which warned of a possible Black Swan in the weeds.
This is in the context of extreme bullish position.
JPM reports as “The change in global HF net leverage among all strategies is showing one of the biggest increases on a rolling 8 week period.”
Societe Generale states, “ An index tracking cross asset momentum this month staged one if its sharpest reversals on record with 9 of 11 components emitting bullish signals.
It looks like Bears are throwing in the towel and Bulls have gotten extremely excited just in time for the next move lower in markets…just as time and price cycles would have it.
As we’ve shown a few times this month June 12/13 is 180 degrees straight across and opposite 615 (6147, the SPX all-time high).
In the same way Feb 19, the all-time high squares out with 481, which was the high in Jan 2022 (4818) and very close to the low on April 7, 2025, at 483 (4835).
In sum, deteriorating fundamental data, coupled with high valuations and rising interest rates could be triggered by current geopolitical events.
However, when chaos and complacency are joined at the hip expectations can mutate quickly.
For example it is being reported that Iran is seriously considering closing the Strait of Hormuz. We don’t know how high the price of oil will go if that happens because it has never happened before.
It is safe to assume that the price of oil would quickly exceed $100 and if it stays there for an extended period of time that would be enough to push us into a recession all by itself.
But, if the price of oil were to surpass $200 and stay there, I believe that could be enough to actually push us into an economic depression.
Shockingly, Iraqi Foreign Minister Fuad Hussein is convinced that the price of oil could go up to $300 a barrel if Iran closes the Strait of Hormuz.
Below is a weekly USO showing the recent breakout and verging on a much larger breakout above 82
Conclusion. I don’t think Friday and the events in the Middle-East are a one-off.
But…if the cycle exerting its influence ends up defining a low this week, then you can imagine how the momentum mongols will take offers… for the moment.
June 21st is only 5 days away