Unlocking the secrets of Gann: Will the market crash in August?

Bearing in mind that deviations between calendar-time and the Square-of-9 are subject to “Time Dilation”, excessive or shorter durations need to be adjusted to the value of the nearest cardinal or diagonal. Special Relativity Theory explains this anomaly saying that when the Earth’s speed accelerates, the motion of time slows down. The S&P 500 Index’s time-frames during the GFC and Eurozone crises, and those of the current recovery phase, demonstrate this phenomenon at work (Figures 6, 7 & 8).

Click to enlarge.

Figure 6

  1. Sep. 01, 2000 — Apr. 12, 2003 = 922cd

             [The nearest value is 916, eastern cardinal - Figure 7]

  1. Apr. 12, 2003 — Oct. 31, 2007 = 1694cd

             [The nearest value is 1702, western cardinal – Figure 8]

  1. Oct. 31, 2007 —  Mar. 09, 2009 = 496cd eastern cardinal - Figure 7]
  2. Mar. 09, 2009 —  Apr 23, 2010 = 411cd eastern cardinal- Figure 7]
  3. Apr 23, 2010 — Jul. 02, 2010 = 69cd eastern cardinal- Figure 7]
  4. Jul. 02, 2010 — Apr. 29, 2011 = 301cd

             [298 western cardinal – Figure 8]

  1. Apr. 29, 2011 — Dec. 19, 2011 = 234cd
  2. [233 western cardinal– Figure 8]

Figure 7 – Eastern Cardinal

 

 

Figure 8 – Western cardinal

Allowing that the March 09, 2009 trough terminated upon the Square’s eastern cardinal, on day 496 of the run, the subsequent 2009 – 2013 recovery wave must also terminate there. On August 16, 2013, when it measures 1621cd, it and the 496cd downswing will form a 3600 angle upon the Square’s eastern cardinal (Figure 9).

Figure 9 – Eastern Cardinal

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