Can the Nasdaq Reach 21,600 Soon?-II
#229 Yes, we did! What now?
Last week, I wrote: “I never thought the Nasdaq Composite would reach a price level of $21,600 anytime soon, but I am starting to believe it may be achievable in the next few months. If you align it with time, the $21,600 level on the Nasdaq may be very logical from a Gann analysis perspective.” A few days later, the Nasdaq 100 and the Futures reached this level”.
What now? Is this the end of a long-term trend? I do not think so! This secular trend may continue for some time, and reviewing the 7-year and 60-year cycles in the years ahead of us, we may not be there yet. I have updated the Nasdaq 100 chart in the below post to show you my expectations for the next few months.
Almost 80-90% of financial crises in the last 70 years can be linked to the 7-year Sabbatical cycle, which is called the Shemitah year. The years 2021-2022 were such as year, as well as in 2015, 2008, 2001, 1994, 1987,1980,1973, and 1966 etc.; around all these years, there were financial panics of some sort.
W.D. Gann also mentioned this 7-year cycle in his stock Market Course:
The number "7" is the basis of time, and a panic occurs and depression in the stock market every seven years, which is extreme and greater than the three-year decline. Note 1907, 1917, etc. Seven times seven is fatal, which makes 49 years, and causes extreme fluctuations in the 49th to 50th year. Remember that you must begin with bottoms or tops to figure all cycles, whether major or minor. Extreme fluctuations also occur at the end of a 30-year cycle as you can see by going back 30 to 50 years.
Please take a look at the chart below regarding the S&P 500 and the occurrence of financial crises, which seem to follow a 7-year sequence. I have used the year 2001 as a reference point in this chart.
It's important to note that financial panics do not simply happen every 7 years between highs and lows; they tend to occur in specific years.
What can we learn about when the next financial crisis might occur? Based on this sequence, it is not anticipated for next year. However, there are other long-term cycles that could indicate impending corrections, possibly even as soon as next year.
If you want to learn more about the ancient law known as the Shemitah and the mystery of the 7-year cycle, I recommend reading Jonathan Cahn's book, "The Mystery of the Shemitah." This book provides valuable insights into how this cycle is linked to depressions, recessions, and financial panics that occur worldwide.
Cahn meticulously outlines the specific days and times when these cycles began and ended, illustrating the connection between this ancient law and financial crises. It's a fascinating and enlightening read.
I am currently finalizing my Stock Market Outlook for 2025, in which I will discuss some of the longer-term cycles at work. The Stock Market Outlook 2025 is expected to be published by the end of the week. Buyers will receive an email when it can be downloaded.