Very often, investors ask the question why a market is topping or bottoming on a specific date at a specific price. However, investors tend to forget and move on, seemingly only interested in ‘what’s next’ as opposed to getting the maximum insights from the past (which will be the basis for forecasting future turning points). In this short update, we show you how the market is printing major turning points at dates that are ‘interesting’ but also ‘obvious’. However, nor financial media nor social media talks about this. In a way, the market is making things very visible even though it feels like it is hiding its signals. It’s visible for those that are looking at both axes of the chart which is time + price. Note that our weekend alerts are full of similar details, many more than in this short summary: you may want to check out the Trade Alerts weekend update as well as the juicy forecasts for end of year in the Momentum Investing alert (scheduled for Monday morning).
Let’s look at some key turning points since the 2007 major top. The chart embedded below shows key turning points and we focus on the dates. Yes, it is possible to find those dates PRIOR to it happening, that’s the whole point we are trying to make!
SPX findings related to the 2007 secular top and 2009 crash lows:
- The lows were set on 6.3.09 at 666 points.
- The last time SPX traded at 666 points was on 9.9.96 (indeed, 13 years before).
- The number of trading days between both dates is 3141 (remember the Greek letter π from geometry?).
- This SPX secular low on 6.3.09 at 666 points came 333 trading days after the major 2007 top was confirmed on 7.11.07 when SPX traded at 1515 points (secondary top and topping confirmation).
As seen on below chart, the market created a huge triangle between October 2007 and March 2013, a period of 66 months. The arrows on the chart coincide with secular turning points, coincidentally on ‘special’ dates.
SPX findings related to the 2013 secular break out and 2015 top:
- SPX topped at 1555, secondary top at 1515, back in October 2007.
- On 1.3.13 SPX finally broke out above 1515.
- The first test of 1515 happened on 13.2.13 and the real breakout happened on 1.3.13. That’s 1336 trading days after the 2007 top confirmation on 7.11.07.
SPX findings related to the 2020 Corona crash turning point:
- The breakout after the 2015 consolidation was exact on 9.11.16 at 2170 points. The depth of the Corona crash was 2192 points, 1230 calendar days later.
- Prior to the Corona crash, the market peaked on 20.2.20 at 3393 points (+/- 1d). The lows were set on 23.3.20, the trading range that day was 2191 – 2300 points.
As seen on below chart, the market created a huge triangle between 2016 and 2020 but a very different one than back in 2007-2013. The arrows on the chart coincide with secular turning points, coincidentally on ‘special’ dates.
Our weekend alerts feature many more details. The Trade Alerts weekend update has many more details while the Momentum Investing alert (scheduled for Monday morning) will feature juicy forecasts for the end of this year.
