A look at the daily chart of the S&P shows that the end of the first week in May marked what in hindsight proved to be a momentum peak for the advance off the May low.



At least for this particular leg up, we'll have to see what the market does in what we've been looking for as a turning point in the first week of July, 180 degrees in time from the January high. It may be that last week defined a secondary peak and a right shoulder of a head-and-shoulders topping pattern, or that this week will mark a low of some kind.



One of the most important tells will be the behavior if the major market indices as they trade below their June low thereby turning their respective Monthly Swing Charts down. This will be accomplished on any trade of one tick below 888.84 at any time in July. Remember, 888 SP was the level I identified as being the key pivot on the decline down from the 950 swing high.

Why was 888 the key pivot? As the square of 9 below shows, 888 is 720 degrees in price up from the 666/667 low and it is 180 degrees in price down from the 950 high. 888 proved to be the low tick on June 23rd leading to a nice 42 point S&P rally to backtest the May high in 6 sessions, with last Thursday being the seventh day (when many reversals often show up).

Mere coincidence?

If this "square out," or 90-degree time/price relationship into the May high, seems mere happenstance, consider that the March 6 low was 90 degrees -- or square the number 667.