W.D. Gann (1878-1955), the great Texas technician, developed several technical analysis tools which are still used today. They include Gann angles, the square of 9, and the circle of 360 among others. Gann also placed great emphasis on the number 49 (the square of 7) in his work.
CURRENT DOW CHART
Taking a look at our current market (Dow Industrials index) we can see a convergence last week of several intervals consisting of the number 49.
Last Wednesday was 49 calendar days since the spring equinox on March 20. Tuesday was 49 trading days after the intra-day low set on February 26. Longer term, last week was the 49th week since the week of the June 4, 2012 low. And even longer term (not shown) April was 49 months after the bear market low in March 2009.
BOTTOM LINE
The convergence of these intervals would seem to call for a turn in the market last week from up to down.