Here we go again. I’ve been doing this work for 16 years and have seen just about every time window. They all do something and the past couple of years they’ve done little. In my travels I’ve found one of the major reasons people lose large sums of money is because they can’t recognize major turns in markets. I’ve worked with people who did well shorting the market in 2008 but gave it back in 2009. I’ve also worked with people who did well up to 2007 and well, you know what happened after that.
So I’d rather come here, tell you another big window is upon us and warn you that risk is high as opposed to saying nothing and allow you to potentially miss an important change of direction. The truth of the matter is if you didn’t recognize the September turn the chances are you might have pushed the panic button as we got near the low on Oct. 15 and be buried right now. So to think if you were long on Sept. 18 that you sat through the next month unscathed and are still long right now is probably a fantasy.
So, yeah, here we go again. I’ve told you the rest of the world has a major window hitting this time of the month, namely Europe and Australia which hit their 610-week window off the March 2003 low from here to the end of the month. The FTSE which is shown below isn’t going to hit a new high this week but it will test a key trend line. That is entirely beside the point as we have charts here in the United States that could hit fresh highs.
Right now the SPX is sitting at a 1,433 trading day high off its 2009 bottom. The significance there is we are looking for the number 1440 (10*144) which is very important to the Gann universe. This chart is already showing a peak at 609 weeks (which is also the back end of a very long 144/987 month window we’ve discussed since September).