This is where the S&P 500 should max out in 2021, before next bear market begins

Now the stock markets bulls are safe and happy again for a few months. Today I would like to show you where the next important bull market cycle which started the day before the US presidential election, should continue in terms of price and time before a new monthslong bear market (-20% and lower) is expected, that would have to re-test the annual 3000 pts support magnet in a very classical way.

For simplicity's sake let's call this newly triggered bull market cycle the Biden Rally...

To start with this important GUNNER24 Forecast and to work out at what S&P 500 price level the Biden Rally is likely to exhaust we take a close look to W.D. Gann`s Financial Master Plan that originally was compiled by him in 1909. The guide, to how the individual trading years should behave:

And we can see that these predictions are so correct for the secular bull market, which is currently in its 11th year, that we should assume with some degree of certainty that next year, from a general perspective, prices will decline for the most part until another important bear market low is found.

The Master Plan forecasted the beginning (2009) of now underway secular bull, the important higher 2015-2016 bull market lows and finally to the T the unusual strong rally year of 2019 which was panic buying time frame as markets literally just rallied from very first into very last trading day of 2019.

The guidelines for current 2020 have also been met, were even exceeded, as the hardest, fastest bear market ever ended at March coronavirus panic lows, followed by an absolute buying panic, the so often strained V-reversal, what is now being continued with the Biden Rally cycle which now leads to even higher alltime-highs.

For this S&P 500 topping analysis, I would like to work with the GUNNER24 Charts on yearly base. This will continue to be an extreme exception, as this knowledge is normally reserved only for paying traders. However, a serious analysis of the S&P 500 in this particular case is only possible with this annual knowledge.

Lastly, on March 15, 2020 (GUNNER24 Newsletter: „Fathoming this crash cycle – Possible crash cycle panic lows“) we were able to estimate the probable bottom of the February-March sell-off cycle quite accurately with the help of this yearly 35 Candle GUNNER24:

The 2020 bear market started after the to the T work off of lower line of 2nd double arc what is natural bull market main uptarget and main resistance out of the # 1 // 60.96 pts // year 1974 Low. In the end, the market found its March 23 coronavirus panic resp. its bear market lows in the middle of the 1st double arc support area, thus has very successfully tested back the prior finally overcome 1st double arc, a former important resistance area on yearly base.

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In the tailwind of the Biden elect, the S&P 500 was able to overcome the pre-corona alltime-high resistance, that was triggered by the yearly GUNNER24 Resistance of the lower line of 2nd double arc. The market with the current 3557.54 pts is already trading very far above this lower line of 2nd and at the same time is far above the 2*1 Angle, what was a very important resistance on yearly base as it braked at final highs of 2019.

The decisive elimination of these two (former) main resistances is an expression of the current bull strength and purchasing power. And I think it will be the case that nothing and nobody can prevent the market from closing this year 2020 well above these two rails.

So the year 2020 will be able to deliver another buy signal on annual base. Therefore the year 2021 will inevitably:

First: Print higher highs as the year 2020!

==> Second: Has to test and work off the now activated upper line of 2nd double arc uptarget resistance at 3840 pts with a probability of well over 90%.

With the analytical steps above we have now identified the very first magnets where the final high of the next year could be made! The horizontal highlighted above, what is another „natural“ yearly uptarget for 2021 and sits for ever at around 3755 points, likely will be only a "less important" GUNNER24 Uptarget for the coming year, just as this following 3772 points GUNNER24 Horizontal should represent an 2021-important = yearly, but rather minor coming battleground:

This above yearly bull market measurement is an unusual 24 Candle up starting at # 1 // 60.96 // 1974 Low which does not mean that it does not work and can`t be used for predictions and signals. On the contrary!

Because here the 1st double arc main resistance nailed the Dobule Top on DECADE base of the years 2000 and 2007 what led the market drop in the course of the financial crisis into the 100% accurate backtest of the 1*2 Support Angle (MILLENIUM main support) and into the final low of the year 2009 what is the starting point of the current 2009-2021 bull run.

2020 panic cycle lows was the next backtest of the former finally upward broken 2nd double arc zone. This triggered the 2020 V-shaped panic buying and in the tailwind of the Biden elect the natural uptarget = main resistance of lower line of 3rd double arc was overcome and Biden Rally top found natural uptarget main resistance of upper line of 3rd.

This above yearly 24 Candle up reveals WHY the market is faced with some bigger resistance problems actually as it behaves little bit choppy and is leaning to the negative side for the most part of the 2 gone trading weeks ==> the 2 Rally-Mondays triggered by the vaccine news found yearly resistance exactly here at this upper line of 3rd rail!

But this upper line of 3rd will be broken in further course cause it usually is only another minor yearly threshold and normally will be finally overcome at the offical close of 2020 at latest and this would mean a next yearly buy signal and as a consequence of this we have to expect higher 2021 alltime-highs etc..., and this is why the S&P 500 is expected to continue the Biden Rally cycle for:

First, the natural yearly GUNNER24 Horizontal Resistance out of highest price of lower line of 3rd double arc what runs for ever at 3772 pts. That 3772 pts resistance horizontal is just another minor yearly uptarget, IMHO.

==> Second, and this is another major uptarget and potential turning point for the 2021 Biden Rally cycle, into the 3970 pts! The test and work off the major 3970 pts has a probability of about 65%.

Ok. Gann`s Financial Master Plan is forecasting lower prices for coming 2021. The year 2021 will be the 12th year of the secular bull market what started at # 1 // 666.79 pts // final low of 2009 that was triggered by 1*2 Support Angle and 2009 ITL out of 1974 Low which both have formed MAJOR price time support magnet close to the evil 666. Next below is the yearly setup which measures exactly this then 12 year old secular bull market.

This setup is probably the most important in terms of the coming/awaited 2021 Biden Rally top turning point, uptarget and the 2021 bear market downtarget because it is concentrated only on the then 12 years old secular bull market. It focuses ONLY on the then 12-year secular bull market dimensions: