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Secrets of the Square of 9 Chart

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COOPER'S TECHNICAL ANALYSIS
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The S&P 500 (INDEXSP:.INX) has not yet satisfied a 90-degree decline off the high. This was one reason why the decline into January 13 was suspect and why it was unlikely to prove a "one-day wonder" and why the most marginal of new highs on January 15 (just above the December 31 peak) was probably going to prove to be a test failure.

A 90-degree decline off S&P 500 1850 ties to around 1807.

Most interesting is that March 6, which will be the fifth anniversary of the big 2009 low, is 90 degrees square 1750. This is interesting because 1750 represents a 50% retrace of the October-January range. Markets seek equilibrium. It's a matter of how quickly they do so and how disruptive the path to these time-price harmonics are that perpetuates players' psychology.

In other words, a waterfall decline to 1750 would dispel complacency while a stairstep decline would probably contain complacency to a degree.

What is intriguing about this upcoming 60-month anniversary of the March 2009 low is that 60 on the Square of 9 Chart is straight across and opposite December 31, the record S&P 500 high.

So, time points to price, and price points to time regarding the high and this upcoming March 6 anniversary.

The time-and-price relationships interwoven in the Square of 9 never ceases to amaze me. For example, putting "zero" on 1929 for the year 1929 "points" to November 21, which was the crash low in 2008. Did the 2008 crash low mirror the 1929 crash low? Is the 5-year advance mirroring the 5-year advance off the 1932 low?


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What is eerie is that putting "zero" on 1987 for the year 1987 ties to the dates January 26 and 27.


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The S&P may find support at its 50 DMA, but I think the discrete course of action is to wait for that support to be proven as many stock indices have fulfilled muti-year upside price targets with the S&P potentially having carved out a big picture "M A" Top and 13-year Megaphone Top.

If you are interested in the most remarkable trading tool ever created, you can contact Jeff Cooper to purchase a Square of 9 Wheel, which includes personal consultation on how to use it. Contact Jeff at cooper@minyanville.com.

POSITION:  No positions in stocks mentioned.
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