David Hockney is highly regarded in the art world for his innovative approach to painting, printmaking, and photography, which has consistently pushed the boundaries of traditional art forms.

Known for his vibrant depictions of California swimming pools, portraits, and landscapes, Hockney’s work captures the essence of contemporary life with a distinctive use of color and perspective.

His pioneering use of technology, from early experiments with Polaroid photography to creating digital paintings on iPads, has kept him at the forefront of modern art. Hockney’s ability to blend personal narrative with universal themes of nature, space, and human interaction has earned him a lasting legacy as one of the most influential artists of the twentieth and twenty-first centuries.

=============

“There is nothing new under the sun.” Ecclesiastes 1:9

“What happens today has happened before and will happen again.” Livermore

“Rather than love, money, fame, give me truth.” Henry David Thoreau

“Excesses in one direction will lead to an opposite excess in the other direction.” Robert Farrell

===========

Tracking Account Valuation January 4, 2022 – $1,206,085

Tracking Account Valuation June 11, 2024- $2,302,253 +92%

Intermediate-Term: ~ Downtrend

LOLR Trend: ~ Downtrend

Positions: 21% VXX, 16% SQQQ, 15% SPXU, 48% Cash

Hard stops: VIX 9.93, SQQQ 7.03, SPXU 25.45

================

Noon: INTRDY Stoch: OB/Rising ST Neutral

Daily LOLR STS

5/2-DT 6/1-DT 5/2-DT

Breadth: +1750/+2055

ADR: 4.46, SPY: +6.03 Neutral

NYMO: +27 Rising Intraday

NAMO: +27 Rising Intraday

The Summation Index is Rising

=================

The Bible extols King Solomon for his unparalleled wisdom and wealth. His wisdom is described as vast as the grains of sand on the seashore and greater than that of the wise men of Egypt and the East.

Jesse Livermore (1877-1940) is regarded as one of the greatest traders of all time and the most prominent of the 20th century. Known as “the Bear of Wall Street” for his knack for predicting market crashes, his legendary trades during the Panic of 1907 and the Great Depression are particularly notable. At his wealthiest, Livermore’s fortune is estimated to be equivalent to $1.5 billion today.

King Solomon and Jesse Livermore have both reminded us that what will happen today has happened before and will happen again. Keeping this wisdom in mind, we embark on the second half of 2024 by looking to history to inform us regarding the approximate trajectory of the SPX over the remainder of the year.

The McClellan Oscillator and SPX patterns that followed the SPX peaks of August 1987, July 1990, March 2000, September 2000, July 2007, February 2020, and January 2022 have provided a roadmap for the SPX pattern in the weeks and months ahead.

Readers may recall from last week’s article that we posited:

“Those early lessons in mass, energy, and momentum have been invaluable in analyzing market dynamics and trend reversals. Momentum, a core concept in physics, is a vector quantity with both magnitude and direction, making it perfect for studying stock market movements.”

Careful attention to detail in those historical patterns for the NYMO and the resulting patterns for the SPX reveals remarkable similarities following a negative NYMO thrust, as discussed in last week’s article.

First, we will examine the historical patterns for the NYMO and SPX and note the recurring trends. With this analysis, we can lay out an informed estimate of the NYMO and SPX patterns for the immediate future and the weeks ahead.

A century of data from the 1920s to the present shows these patterns repeating after each negative NYMO thrust.

The raw data below reveals these recurring patterns following the negative breadth thrusts of 1987, 1990, 2000, 2007, 2020, and 2022 in chart form:

August, 1987:

July, 1990:

March 2000:

September 2000:

July 2007:

February 2020:

January 2022:

The remarkable repeating patterns, validating King Solomon’s wisdom from three millennia ago and Livermore’s from a century past, are as follows:

Following the initial negative momentum thrust from the recent all-time SPX high:

The McClellan Oscillator reveals a corrective phase consisting of three additional minor thrusts, around which we’ve annotated with a bold blue box.
Those minor thrusts alternate with upward, downward, and then upward movements.
The SPX mirrors these minor thrusts with upward, downward, and upward movements.
Of these three, the downward thrust results in a retest of the SPX’s initial thrust low or a new low for the SPX.
Following the third minor thrust, the SPX embarks on a new decline, which is more intense and takes it much deeper than the initial negative momentum thrust.

The following chart displays the initial negative momentum thrust from the all-time high on July 16, 2024. Following that thrust, the market commenced a three-minor corrective move on July 24. We’ve annotated the image with a bold blue box highlighting this corrective move’s start.

Applying momentum, a core concept in physics discussed last week, and the wisdom gained from careful historical analysis of the NYMO and SPX patterns following powerful negative momentum surges since 1987, we can project the following generalizations for the upcoming week and the weeks that follow:

Following Wednesday’s upward minor surge, which took the SPX from Wednesday’s low of 5419.98 to Thursday’s high of 5491.49 and retested Friday with an intraday high of 5488.32, we expect a minor downward surge early this week.
Based on historical patterns, this downward surge will retest the Wednesday low of 5419.98 or produce a new lower level.
If a new low occurs, it could take the SPX far below 5419.98, mimicking the sharp second minor thrusts of April 4, 2000 (a 7% drop), September 22, 2000 (a 2% drop), August 6, 2007 (a 2% drop), February 9, 2018 (a 2.5% drop), or January 10, 2022 (a 3.2% drop).
Assuming the markets follow the historical patterns outlined above and produce a retest low of 0% to 7% below 5419.98 in the coming days, we expect a third minor surge to take the SPX to a rebound high approximately 3 to 7 sessions after that retest low.
Following that third minor thrust to a rebound high, we anticipate a more intense and substantially more profound decline to begin, which we will discuss in further reports and articles.

This notice is a quick note about the possibility of an SPX drop between -2% and -7% in a day or two: such a move could be highly profitable for the nimblest of leveraged traders but hazardous for those on the wrong side. We implore readers to exercise appropriate caution and risk management should this unusual move occur.

As we move forward, subscribers can be sure that we will continually strive to bring the market’s trend into sharp focus across all time frames.

We will examine and discuss the overnight futures at 9:15 on Monday Morning.

Trial Offer: $5 for ten days. Cancel anytime and pay nothing more, but still get the ten days.

Follow on X (Twitter) @sevensentinels

David Hockney is highly regarded in the art world for his innovative approach to painting, printmaking, and photography, which has consistently pushed the boundaries of traditional art forms.

Known for his vibrant depictions of California swimming pools, portraits, and landscapes, Hockney’s work captures the essence of contemporary life with a distinctive use of color and perspective.

=============

“There is nothing new under the sun.” Ecclesiastes 1:9

“What happens today has happened before and will happen again.” Livermore

“Rather than love, money, fame, give me truth.” Henry David Thoreau

“Excesses in one direction will lead to an opposite excess in the other direction.” Robert Farrell

===========

Tracking Account Valuation January 4, 2022 – $1,206,085

Tracking Account Valuation June 11, 2024- $2,302,253 +92%

Intermediate-Term: ~ Downtrend

LOLR Trend: ~ Downtrend

Positions: 21% VXX, 16% SQQQ, 15% SPXU, 48% Cash

Hard stops: VIX 9.93, SQQQ 7.03, SPXU 25.45

================

Noon: INTRDY Stoch: OB/Rising ST Neutral

Daily LOLR STS

5/2-DT 6/1-DT 5/2-DT

Breadth: +1750/+2055

ADR: 4.46, SPY: +6.03 Neutral

NYMO: +27 Rising Intraday

NAMO: +27 Rising Intraday

The Summation Index is Rising

=================

The Bible extols King Solomon for his unparalleled wisdom and wealth. His wisdom is described as vast as the grains of sand on the seashore and greater than that of the wise men of Egypt and the East.

The McClellan Oscillator and SPX patterns that followed the SPX peaks of August 1987, July 1990, March 2000, September 2000, July 2007, February 2020, and January 2022 have provided a roadmap for the SPX pattern in the weeks and months ahead.

Readers may recall from last week’s article that we posited:

“Those early lessons in mass, energy, and momentum have been invaluable in analyzing market dynamics and trend reversals. Momentum, a core concept in physics, is a vector quantity with both magnitude and direction, making it perfect for studying stock market movements.”

Careful attention to detail in those historical patterns for the NYMO and the resulting patterns for the SPX reveals remarkable similarities following a negative NYMO thrust, as discussed in last week’s article.

First, we will examine the historical patterns for the NYMO and SPX and note the recurring trends. With this analysis, we can lay out an informed estimate of the NYMO and SPX patterns for the immediate future and the weeks ahead.

A century of data from the 1920s to the present shows these patterns repeating after each negative NYMO thrust.

The raw data below reveals these recurring patterns following the negative breadth thrusts of 1987, 1990, 2000, 2007, 2020, and 2022 in chart form:

August, 1987:

July, 1990:

March 2000:

September 2000:

July 2007:

February 2020:

January 2022:

The remarkable repeating patterns, validating King Solomon’s wisdom from three millennia ago and Livermore’s from a century past, are as follows:

Following the initial negative momentum thrust from the recent all-time SPX high:

The McClellan Oscillator reveals a corrective phase consisting of three additional minor thrusts, around which we’ve annotated with a bold blue box.

Those minor thrusts alternate with upward, downward, and then upward movements.

The SPX mirrors these minor thrusts with upward, downward, and upward movements.

Of these three, the downward thrust results in a retest of the SPX’s initial thrust low or a new low for the SPX.

Following the third minor thrust, the SPX embarks on a new decline, which is more intense and takes it much deeper than the initial negative momentum thrust.

The following chart displays the initial negative momentum thrust from the all-time high on July 16, 2024. Following that thrust, the market commenced a three-minor corrective move on July 24. We’ve annotated the image with a bold blue box highlighting this corrective move’s start.

Applying momentum, a core concept in physics discussed last week, and the wisdom gained from careful historical analysis of the NYMO and SPX patterns following powerful negative momentum surges since 1987, we can project the following generalizations for the upcoming week and the weeks that follow:

Following Wednesday’s upward minor surge, which took the SPX from Wednesday’s low of 5419.98 to Thursday’s high of 5491.49 and retested Friday with an intraday high of 5488.32, we expect a minor downward surge early this week.

Based on historical patterns, this downward surge will retest the Wednesday low of 5419.98 or produce a new lower level.

If a new low occurs, it could take the SPX far below 5419.98, mimicking the sharp second minor thrusts of April 4, 2000 (a 7% drop), September 22, 2000 (a 2% drop), August 6, 2007 (a 2% drop), February 9, 2018 (a 2.5% drop), or January 10, 2022 (a 3.2% drop).

Assuming the markets follow the historical patterns outlined above and produce a retest low of 0% to 7% below 5419.98 in the coming days, we expect a third minor surge to take the SPX to a rebound high approximately 3 to 7 sessions after that retest low.

Following that third minor thrust to a rebound high, we anticipate a more intense and substantially more profound decline to begin, which we will discuss in further reports and articles.

As we move forward, subscribers can be sure that we will continually strive to bring the market’s trend into sharp focus across all time frames.

We will examine and discuss the overnight futures at 9:15 on Monday Morning.

Trial Offer: $5 for ten days. Cancel anytime and pay nothing more, but still get the ten days.

Follow on X (Twitter) @sevensentinels