A technical study that is not well followed but that can be very instructive of the natural rhythm and potential direction of the stock market is the Gann Mass Pressure Index. It is similar to the Decennial (10 year) Cycle that we have written about in the past but is much more sophisticated in its construction. The index is a composite of 6 years’ worth of daily returns / data points from the past.  10 years back (2011), 20 years back (2001), 30 years back (1991), 40 years back (1981), 60 years back (1961) and 80 years back (1941). WD Gann used the past to make his forecasts and used many different timing solutions to do so. This composite is one of those timing solutions. WD Gann used the market history to make a forecast based on what he determined to be highly significant time periods. It was road map to the future. The chart below is the Gann Mass Pressure Index for 2021 which again is based on the composite returns from 10, 20, 30, 40, 60, 80 years back. As one can see, it shows a significant spike high in mid-April, then sideways for a while and then a descent from May into the month of September then a rally. It is a road map and a guide, but should not be considered infallible.

This chart below is a representation of the index for the year 2021

Chart provided by @MarkNewtonCMT


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