SP500 (SPX) charts showing the Gann Square of 90 and Gann Square of 144. Charts for your viewing pleasure.
I note here that the first 45 days moved at 1 point per day while the second 45 days moved at one point per two days. This showed a weakening of the short term trend. The weakness after day 90 had price moving back towards 1 point per two days and the trend was less strong than the initial move up. If price continues up into the 45th day (really 135 total) then price will have moved down at less a rate than the move up. This would be short term bullish.
The total move up was about 1444 which is interesting as a fractal of 360ish. (Note that I should have drawn the square at 1440 to make more sense.) The initial 144 months moved up at a constant rate. The bubble into 2000 moved back down to that slope in 2002 and then again in 2007-2009. Current, price is right at that slope and most likely in equilibrium with time. Until price moves back above the slope line it will provide resistance. For the long term, I suspect that buying below the line is less risk than significantly above the line.
Note that price “may” stay below the equilibrium slope line for some or all of the cycle time it remained above that angle.
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Tags: Gann Square2 Comments
Hi Andy,
Nice charts. I’d like to get some explanations. Do you mean that from thw two charts (90 & 144) we see that the SPX is going to decend?
Thanks,
Gary
Gary – I updated the post with my observations.