Stock Market

$$ The 21st of the Month

Immediately above is a weekly chart of the SP500 holder SPY with the daily dates most of the major lows and highs labelled. Click on it to zoom-in on this chart.

As you can see, it is not uncommon for a major low or high to fall between the 18th and 24th of the month with a focus on the 21st. Many believe this takes place due to the changing psychology of investors and traders as per the zodiac annual cycles every 21st of the month

In any case, whenever the market is making a major swing low or high into the time period of the 18th to 24th of the month, I am always on the look out for a big turn. Since the market began crashing following the May 19, 2008 top, there have been two instances where prices had the opportunity to make a major swing low into the 18th to 24th time period. These were Sep 18, 2008 and Oct 24, 2008 which resulted in 12% and 20% rallies respectively. I think this Friday Nov 21st low has a much better than even chance of producing a +25% rally.