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The Market is Approaching an Important Anniversary

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Editor's Note: The following is a free edition of Jeff Cooper's Daily Market Report. For a two-week FREE trial of his daily commentary and nightly day and swing trading picks, click here.

Tomorrow is the 5-year anniversary of the July 2007 primary high. The 5-year, 60-month cycle, has often called important turning points.

For example there was the August 1982 low to the August 1982 high, followed by a crash.

The market broke out for a parabolic 5-year run in the first quarter of 1995, concluding with the historic top in the first quarter of 2000..
From the important October 2002 low, there was a 5-year advance into October 2007.

Then of course, there was the 5-year run-up from 1932 to 1937.
Probably just happenstance.


Anyway, it is worth noting that July 19 squares a price of 1379 on the S&P 500.

It is also interesting that July 19 is 90 degrees or square the date of October 19, which was the crash day in 1987, which was 25 years, or 300 months (60 X 5) ago.

The power of these square-outs is exemplified by the fact that the all-time S&P high of 1576 was 90 degrees, or square the October 11 date of that high in 2007.

The important thing to remember is that while not all square-outs represent important highs or lows, all highs and lows are important square-outs of time and price.

This was the case this year when time and price met at 1422 on April 2.

See the square of 9 chart from this morning's Daily Market Report here:

Click to enlarge
POSITION:  No positions in stocks mentioned.