Caught between two major Fibs
The long term target on the break from 61.8% at 10,050 remains at 6380, this is based on the 61.8% rule. The break from this area has also held 23.6% of the rally at 8850. So, they are now caught between two major levels. Every setback on the rally from the 3/13/20 low has held either 38.2% (once) or 23.6% (3 times) so far. You can now use 8850 as the long term swing point. We will watch all the retracements on any rally from here and the first level is 38.2% at 9440, if this is all they can get up to, it will be a negative sign. With a solid close below 8850 look for the long term target of 6380 (61.8% rule). Also watch for support at the 8440 major Gann square and the 200 day average at 8340. With a solid close above 9440 (38.2%), look for 61.8% back to the 2019 high, this is 10,050. It will take a solid close above here to give us a new upside target of 11,720.