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business newsThe Signifiance of the Number 23 in the Markets
Twenty-three years ago was the 1987 crash. Twenty-three is on what's called the Cardinal Cross on the Gann Square of 9 Chart. And we're 23 months from the March '09 low.
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Twenty-three is on what is called the Cardinal Cross on the Gann Square of 9 Chart. This simply means it is on the cross of numbers on the north/south, east/west axis.
Consequently, 23 "squares" March 21, the Spring Equinox.
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Squares as opposed to oppositions are often dramatic in the markets because when something is in opposition it is at least directly within sight and in front of you and can be dealt with. When something is square, it means it is out of the field of vision and the markets can be blindsided. For example, the top at 1576 S&P was square, or 90 degrees from the date of the high on October 10, 2007 on the Square of 9 Chart.
Why this is interesting is that if 1344 remains the high into this time frame surrounding March 21 with the market tracing out lower lows and lower highs, it will potentially follow an analogue of the pattern from the 1987 top to the crash as the last lower pivot high in ’87 occurred near the Autumnal Equinox that year.
The top in 1987 was on August 24 which is opposite February 18, which was last Friday’s high. The crash in 1987 was on October 19 which is opposite April 18. They resonate. April 18 is a geometric 60 degrees in time from this year's February high just as the crash in 1987 was approximately 60 degrees from the August peak. Gann referred to this period as the Death Zone, which is a window of vulnerability 49 to 55 days from a high where an accelerated decline may play out -- if one is going to play out. This year, 49 days from February 18 is around April 7. Again this all assumes that the 1344 top remains a top. The more time goes by where 1344 is not exceeded, the more the possibility that the market is vulnerable over the next few months, especially with a Hindenburg Omen still on the clock until the end of April.
The Hindenburg Omen has done a good job of identifying sharp declines in the past and another signal was given in the fourth quarter which will remain in effect through April.
However, since there was also an H.O. signal in the summer that skewered the shorts, it’s been given short shrift. It has fallen on deaf ears. Few technicians dare mention it, which makes the entire setup within the context of the ’87 analogue/pattern diabolically interesting.
And, I am reminded that there have been many instances of two-year runs up and down in the market, such as the 1930 to 1932 decline, the 1973 to 1975 decline, and the 2000 to 2002 decline. It will be interesting to see if the two-year anniversary of the March ’09 low marks a lower pivot of a two-year run up similar to the lower high in September 1987.We know that the 60-year cycle from June of 1949 ties to the spring low in 2009.
As a friend of mine pinged me today:
Thirty-seven is about .618 of 60, and all of the triplicates of numbers (which creates increased frequency or vibration) 111, 222, 333, and 666 are derivatives of 37. And, 37 years ago was 1974, the most important low sine 1932.
In addition 23 is .618 X 37 and 23 years ago was 1987.
Speaking of vibration, we are 23 months from the March ’09 low. My friend went on to say he’s not sure this means anything. Neither am I, but I certainly want to keep the DNA of the Gann Death Zone on the radar if 1344 still has not been surpassed by mid-March.
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