I also noted that the index had already outperformed the Dow since their unique lows formed in March 2009. Whereas we are currently waiting for the Dow to complete a 150% rise from that low – and fulfil my target level at 16,175 – the S&P arrived at this milestone in May this year. Gann-theory bulls might now argue there is every chance the index will push on to fulfil the next target in this 'quarters' sequence, completing a 200% rise. If this were to occur, it would please those that like round numbers, taking the index to a precise reading of 2000.
I am more cautious, however. A further 30-point rise to 1791 would complete a 66.66% move from the secondary (but still important) low that formed in October 2011. This requires an advance of just 1.7%. Although the Dow requires a slightly larger 3.6% rise to fulfil my target, this remains an excellent correlation, and well within the acceptable margin for error.
Whichever way I cut and dice it, US stock markets are near to fulfilling my long-term targets, and appear set to confront a period of resistance.
Recommendation: stay long. Prepare to take profit at 1791.