Much like Albert Einstein’s theories on time, light, and gravity being intertwined, price in trading markets has a similar relationship to time. This may explain a certain amount of perceived gravitational pull to certain numbers. It is all in the matrix, so to say.

Looking back at the stock market bottom of the mortgage crisis bear market of March 6, 2009, the S&P 500 index hit a low price print of 666.79.
That became a very important number for WD Gann aficionados and traders. Under Gann’s theories, a squaring of price and time would often result in a change of trend in stocks and commodities. Not always, but often enough for a trader to take note. Simply put, a squaring is the result of a set amount of time equaling a price and vice versa.

For example (just picking a number), if a stock hit a big low at 55, Gann would look for a potential change in trend 55 days out, 55 weeks out, and 55 months out in time.
In his day, Gann was highly influenced by the new developments in physics and chemistry. A great many of his market theories came from these sciences. He also applied and incorporated what he gleaned from the Bible to his own trading in stocks, as well as the books he wrote on trading and investing.

Which brings us back to the number of the 2009 low on the S&P 500, 666.79 (666 being the mark of the beast). If we spin that number out in days, not every cycle produced a turn, but it still remained important. Six times that number is 4000.74 days. Added to the date of the 6th of March 2009, we have the date February, 18, 2020. The all-time-high for that market move was the following day - the 19th, right before the Pandemic Plunge Panic that brought the markets and investors to their respective knees.
Spooky?

In that same vein, adding another 666.79 days to the date February 18, 2020 (for the 7th cycle), we get the most recent high on the S&P 500 futures, December 16th 2021.
The news that broke with the cycle in late February and March 2020 once again appears to be gripping the markets. Although, as of this writing (Monday, Dec. 20), the reactions in the markets have not been as volatile. Indications of fear are prevalent, and concern has been heightened. Outright panic has yet to materialize.
As readers of this blog know, Gann also took note of the fixed cycle of the annual calendar. He noted that on or about the solstices and the equinoxes (the first day of the seasons) were places in time to look for a potential change in trend. Being the first day of winter, the days around Tuesday, December 21st this year should be of interest to traders for a potential bounce, which would coincide with the traditional Santa Claus rally.

If a rally fails to appear, the markets might be speaking loudly. The Pandemic Plunge Panic lasted from February 19th to March 23rd 2020, a period of 33 days just over a month. If we have symmetry in the cycle in time between that 2020 period of 33 days and now, the markets could face a rough patch that could last until on or about January 18, 2022.

Best of the season to all. Trade well and stay safe.

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