The onion pattern

(Please note that this article was originally published in the Sept. 2015 issue of Astro-Trend on August 30, 2015 and has been reprinted below in its entirety and un-edited. The weekly S&P chart is as of the August 28, 2015 close.)

This is an unraveling puzzle that has taken almost eight years to reveal perhaps only a portion of its many facets.

I am calling it an “Onion Pattern” because each time I uncover a layer, I find another fascinating layer.

Our story begins when the S&P 500 topped on Oct. 11, 2007 at 1576. This was the high day of 2007 and led to the vicious bear market of 2008 and early 2009. At the time of the high, I was aware of the planetary positions, but probably didn’t give the positions for that day any great historical significance.

That day, there was a New Moon and Mercury was turning Retrograde that night. Both are short term cycles. It was interesting that these two short term cycles were occurring together. However, I had no idea that this pattern could have far reaching ramifications. Just for the record, based on other factors, I was looking for a major Stock Market peak at that time.

The market declined from the Oct. 11, 2007 S&P peak of 1576 to a low on March 6, 2009 at 666 for a decline of 910 S&P dollars, which was the bottom of that bear market. Then the market began a new bull rally. Obviously, if you are a student of market charts you would be watching to see if the S&P would reach the previous high of 1576, and if that would stop the rally. As you can see on the enclosed chart, if 1576 offered any resistance, it didn’t last long. The market broke out over this level and continued higher.

At this point, if you are a Fibonacci fan, you would project your Fibonacci extension to the next major level. To calculate this, we would take the 910 points the market declined, multiply that times 1.618 to get 1472, and add that product to the low of 666, to get a projection of 2138. If you are a Gann student, you would also project out 2138 days from the low to project a key change in trend date.

That calculation forecasted that Jan. 12, 2015 should be an important date. An ideal time and price match would be if the S&P 500 were to hit 2138 on Jan. 12, 2015. This is what Gann called a squaring of time and price on a 1x1 basis, where time and price are numerically equal.

In late 2014 and into 2015, as the S&P 500 kept making marginally higher highs and reaching over the 2100 level.

Each month I alerted the readers of this letter to be on alert for major Fibonacci resistance at 2138. I was especially hopeful that this event would occur on the ideal Gann projection of Jan. 12, 2015. Alas, this did not happen.

Jan. 12 came and went. The S&P 500 kept getting closer, but with each surge, it would fall back, failing to achieve 2138.

The next chapter begins with my doing my monthly research for the May 2015 Astro-Trend letter. I noticed that there is a New Moon and that Mercury is turning Retrograde within one day, during the May 18-19 window. I thought to myself, that’s doesn’t happen very often. I wondered how often this has occurred and what the market did at these times. I researched this pattern and found it was one of the most irregular planetary patterns I have ever found.

The previous one was just a few months earlier over the Jan. 20-21 window. On Jan. 22, the S&P 500 peaked and then proceeded to drop $84 in about 10 days. I went back further and found 2 or 3 more of these events over a 10-year period. Every one of these coincided within one day of a major turn in the market. But the one that knocked me off my chair was when I ran across Oct. 11, 2007, which had a New Moon and Mercury turning Retrograde within one day.

I used this research in the May Astro-Trend letter, to forecast a major change in trend for the Stock Market near the May 18-19 window. I also alerted to watch for major resistance for the S&P 500 at 2138. As it turned out, the DJIA peaked on May 19 and the S&P 500 peaked at 3:00 AM EDT at 2137.10, making this accurate within one trading day and off by only 90 cents for the S&P 500.

Therefore, time and price did come together, but not the way I had expected. Now please consider that the S&P 500 topped at a Fibonacci price projection using Oct. 11, 2007 and within one trading using the same rare planetary pattern that was evident on Oct. 11, 2007. That is very amazing.

Since the May high, I wondered why the market did not follow Gann’s 1x1 rule and top on Jan. 12. I remembered one of my rules is that the market is never wrong and perhaps the market was trying to tell us something. I got out my date calculator and discovered that Jan.12 to May 20 was 129 days. Using a basic principle of technical analysis, I decided that since Jan. 12 had failed, I should flip that time interval over and project it into the future.

129 days added to May 20 projects to Sept. 27, which is the date of a very rare Lunar Eclipse at Perigee. WOW! This is another example of why I believe that the market has a built in ephemeris, the table of planetary position. The market has the knowledge to project into the future when the major planetary events will occur and act accordingly.

Editor's note: Yesterday, September 29, 2015 the DJIA was –312 points.

About the Author

Norm Winski has been trading professionally for more than 40 years, including 12 years of experience as a member of the CBOE and CBOT. The Aug.