As we have seen, price pressure curves are formidable levels for markets to reckon with on their own and so are time pressure points. When we put the two together, however, the combination becomes unheard of!
More specifically, the meeting of a price pressure point with a time pressure point causes both price and time to expire, which produces a turn in the markets!
This is a classical example of what the famous trader and technical analyst W. D. Gann meant when he said “When price meets time, change becomes imminent“!
And this is exactly what we saw forming on Thursday May 28th and caused us to send out the notification to our readers before the markets opened Friday morning, cautioning them of “odds stacked in favor of a negative day for the US markets“.
Let’s take the Dow Jones Industrial Average as an example. It closed on Thursday at its upper gamma price pressure level, and since the time pressure point was due on Friday, as our readers knew ahead of time, Friday was the day when price would meet time and cause change to become imminent!
As a result, all three US market indices, the Dow, S&P, and NASDAQ, saw a negative day on Friday. The Dow momentarily touched the 17,950 level that we highlighted last week and is now sitting below its alpha and beta curves and other resistance levels as well. The S&P momentarily touched its lower gamma level and the NASDAQ almost touched its upper gamma level before closing negative for the day.
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