S&P 500

The chart below is based upon the October 4th-27th rally.

There are two circles; one centered at X (Oct 27th high) and the other centered at A. (Oct 4th low). Some interesting relationships to note:

There are two circles; one centered at X (Oct 27th high) and the other centered at A. (Oct 4th low). Some interesting relationships to note:

- XB is 90 degrees to AX. B intersects circle X at the project December 7th 'Energy Date' which is vertical to Pt. B. This forms the Pythagorean triangle AXB
- The two circles intersect at C and D. Chord CD is necessarily parallel to Radius XB. CD is the center line of the mystical 'vesica piscis' which is a well known image in sacred geometry.
- AB forms a chord across the circle X which is the hypoteneuse of Pythagorean triangle AXB.

- Project a line from X to form XE that is parallel to chord AB
- Project a line DE that is 90 degrees to the Chord CD that is formed by the intersection of the two circles (X & A)...the vesica pisces.

- Note that the recent rally 'climbed' DE and broke on December 8th--one day after the projected December 7th Energy Date.
- If the market is going to rally into the projected Dec 19-21st date it will obviously have to overcome the December 7th high. (see Gann lines below)
- If the rally is to materialize it will have to break out of the confines of circle X. The circumference of X will be touched by price tomorrow. In other words
**tomorrow's action and Tuesday's opening is critical.**

The chart below shows the Gann fanlines emanating from the May 2nd high (blue) and the July 7th high (red). The 1X2 Gann line from May 2nd is currently at 1258.58. This represents significant resistance and if it is surpassed to the upside a strong upthrust could ensue.

- If wave 3 is equal to wave 1 the target is 1376.55--slightly above the May 2nd high of 1370.58

## 1 comment:

Nice work Pete. Also the inverted H & S projects to 1376. Coincidence ? Maybe the 19th or 28th

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