W.D. Gann understood the character of how markets broaden, how
they contract, the variations between time frames and the
similarities between them. These days we name this fractal geometry. Fractal geometry is
extraordinarily necessary to know how markets develop and has been
utilized by numerous market technicians.
How will we use the 707 fractal to forecast the subsequent few months within the S&P 500? In our most up-to-date forecasts we’ve talked a couple of continued rally into the twentieth or twenty fifth of September 2023, and doubtless one other excessive round October third. After that we’re searching for a decline which may be considerably extreme:
The quantity 707 reveals up right here on a number of totally different time frames. Within the chart beneath the blue line is the 240 minute bar chart of the S&P 500 Futures shifted forwards by 707 models, and the purple bars above are the precise present market:
What is de facto attention-grabbing is that 707 weeks (707 weeks ≈ 12.9 years) and 707 months (≈ 58.916 years) are additionally repeating. That is the place the idea of fractals is available in. Completely different time frames are having the identical type or sample. Have a look at this chart of the weekly S&P 500:
The low in 2009 traces as much as the week with the low in October 2022 – the key low that kicked off the entire bull market since 2009. That is lining up precisely with the low in October 2022, and the sample within the decline between 2008 matches the decline in 2022. Despite the fact that the value motion was far more extreme again then, the shape was the identical. And we’re speaking in regards to the type and now the rally that was happening since October can be repeating very properly 2009 into 2010 and 2011.
So we noticed two examples of 707, the primary on the 240 minute bar chart and the second on the weekly chart. From this we take it one step additional and take a look at 707 months (58.916 years). 707 months seems to be two instances the precise size of the cycle of Saturn. 25.457 years is the precise variety of years of Saturn’s revolution instances two which equals 707 months to the day = 10,759 days.