Let’s take a look at the Square of 9 Chart again, focusing on the swing high on June 11. As shown on "the wheel," June 11 resonates or is conjunct the price of 666/667. In other words, on June 11, the S&P vibrated or squared the price of the low.

Often times, the price of a low will square the time of a high or the price low will square the date of a high, or vice versa.

                                          

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At the same time, note that 666/667 and June 11 are opposition to the price high on that date.


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Observing the possible turning point for this week, we see that this week is opposite the early January peak. However, the important thing to consider is that this is a "master vibration" or square. Why?

The price of the all-time S&P high (not shown, as the grid on square of 9 chart shown doesn't go that high) of 1576 is conjunct July 7. All the numbers on this vector and 90 degrees of this vector are what I refer to as "master square" numbers. It's interesting that the first week of January and 942 sets up on this same vector.

                                   
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So does October 8, which is a day or so from the date of the all-time high of 1576. In other words, the price of the all-time high was square or 90 degrees from the price of 1576 (see link here to this column ). The geometry of the October 2007 high was powerful, in that it was also 90 degrees from the price of the 2002 low. In other words, 768 S&P and 1576 are on the same ‘vector’. Hence, by definition, 768 is also 90 degrees from the October low.

It is also interesting that October 10, 2008 is seen by many technicians as an ‘internal low’ registering extreme historic readings in many indicators.

The October 10, 2008 S&P low was 839.79. That is an important level as the Monthly Swing Chart last turned up on trade above the March high which was 833. This level is near a 50% retracement of the range from 666 to 956 which is 811. If the S&P accelerates on any break of 888 and then 882 this week it would not be surprising to see it skid quickly toward the 830 handle.

Why 882? 882 is a master square number on the S&P currently as it is on the same vector as 768, 1576, and the low 940’s. Note how the correction off the May peak held at 882.90 on a closing basis. 882 is on the same vector as July 7.

Conclusion: There's a better-than-average likelihood that the S&P will be magnetized to this level this week. It's possible; of course, that the Monthly Swing Chart will turn down on trade below 888, and that the index will hold 882 this week. However, the message of the market may be that if the market accelerates through 882, we could expect to see meaningfully lower prices quickly.

Strategy: It's plain to see that the market was receiving no organized support on Thursday, the day before the 4th of July holiday usually showing a bullish bias. When the market doesn’t do what's expected, it pays to listen.

I expect downside follow-through, as noted in my alert on Thursday afternoon. Leading names which ordinarily have powerful sponsorship were allowed to shift for themselves on Thursday as buyers walked away. Investors should be expected to remain on the sidelines ahead of second-quarter earnings season.

If the “correction” plays out that some have been waiting for -- and others said wouldn't occur, as there was substantial money on the sidelines --  then I suspect that the consensus may become that the market has "proved" its bullish position, having carved out a higher low and a possible Inverse Right Shoulder on the S&P if the market turns back up prior to mid- July.

My thinking is that Mr. Market, in all his shrewdness and perversity, could then see a pile-on mentality for the "next leg up" -- which would leave the Street vulnerable to the real correction later in the third quarter.

Let’s see how the ducks line up. Speculation is observation, pure and experiential. Thinking isn’t necessary, and often gets in the way.