What Gann's Square-of-9 means for the Nasdaq 100

Does this portend a change of direction for the Nasdaq?

As stated in “Unlocking the secrets of Gann: Will the market crash in August?” mature intervals bounce off and culminate on the same Square axis upon completing a 3600 rotation from and back to the same point where the preceding interval ended. In cases when a swing terminates upon the Square’s opposite axis, at 1800 angle, it remains incomplete until a 3600 rotation brings it to the axis it bounced off. Having said all that, none of this applies to the Nasdaq100 Index. It behaves differently.

Save for the first swing (Oct. 9, 1985 –Sep. 2, 2000), which terminated upon the northern cardinal, on day 5442 of the run, the other components have thus far adhered to the Square’s south-eastern and south-western diagonals, all terminating at a 900 angle (Figures 5, 6 & 7, below).

 

Figure 5

 The axis of the 1985 – 2000 swing, which measured 5441cd (also too large to display) can be derived from the formula n(n+1)+n/2+1, where ‘n’ is the square root of the span: √5442 = 73.77   (73 x 74 + 37 +1= 5440.).

 

  • Sep. 01, 2000 – Apr. 11, 2003 = 901cd = SE Diagonal (Fig.7)
  • Apr. 11, 2003 – Dec. 26, 2007 = 1721cd = 1723 SW Diagonal (Fig. 6)
  • Dec. 26, 2007 – Nov. 20, 2008 = 330cd = 325 SE Diagonal (Fig.7)
  • Nov. 20, 2008 – Aug. 10, 2013 = 1721cd =  SW Diagonal (Fig. 6)

 

 

Figure 6 – South-western Diagonal

 

Figure 7 South-eastern Diagonal

Yet, despite of the Nasdaqs ‘misbehaviour’, a 3600 alignment between lesser degree wavelet ‘c’ and the entire 3774cd ‘a-’b-c’ span (1721 + 330 + 1721) will take place on Aug. 10, 2013, upon the Square’s south-western diagonal signalling the termination of Wave B and the beginning of Wave C’s final decline (Figures 5 & 6).

While the 2000–2003 Wave A and 2002─2013 Wave B will form a 900 angle on August 10 on the south-eastern and south-western diagonals, the upcoming Wave C must terminate upon the Square’s northern cardinal, at a 3600 angle with bull market’s Wave V (Figures 5). 

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