The importance of a circle - part 3

Gann Master Cycle update on the $S&P 500

Introduction

This article builds upon the article: “The importance of a circle in a forecast” (click on link) written earlier today for our free and paid subscribers.

In below chart on the S&P 500 you can see that I drew a circle from Covid low on March 23rd 2020 through September 1st 2020.

Also I added the Gann tool known as Division of Eight from that same low to high, and exactly twice that range became the high on January 4th 2022. So, you can see how a circle can tell you something about a future target.

That target also squared out on a 2x1 line from low March 23rd 2009, and also from a 2x1 from top February 19th 2020. So, this seems to be a valid cycle.

I am expecting from the January 4th 2022 high a first Elliott Wave (A) of C consisting of 5 sub waves will unfold in approximately 180 days from top, at around July 4th 2022.

Treating the first Elliott Wave as a valid cycle again, my bias is that the low would come in at twice the range of the first impulse wave. Close to this expected low is the Gann Master Cycle low of 60 years ago.

Note: The top of the circle (blue) drawn formed resistance at the recent low of May 20th 2022. This could be important resistance not easily to be broken.

Our paid subscribers here on Substack can also continue reading on this article and find below the further analysis on the Gann Master Cycle following the $S&P 500.

P.S.: On all of our communications, posts and analysis our Terms of Use and Disclaimer apply. Hypothetical or simulated performance based on past cycles have many limitations. Hence, past performance is no guarantee for the future. Anomalies can occur and cycles can contract, extend or invert. So, be careful and always watch the charts in front of you. Disclosure: Positions at the time of writing.