10,050 target has been hit
After holding the swing point of 8850, this was 23.6% back to the 3/13/20 low, they have now retested 61.8% back to the 6/26/19 high, this is 10,050. As we have mentioned before, the long term target on a break from 61.8% is 61.8% back the other way (per the Fibonacci rules and guidelines) and this is 6400. If this is all they can rally after holding 23.6% of the move at 8850, we will look for 38.2% of the same move at 7888 on any break. Also keep an eye on the 200 day average at 8410 for a bounce, this is also a major Gann square. With a couple solid closes above 10,050 the next target area is 11,600, this is a major Gann square and 11,700, this is 78.6% back to the 6/26/19 high. For shorter term trades you can use the secondary Gann squares posted on the chart below, they are marked by the yellow horizontal lines. They can be used as support and then resistance when taken out and the reverse when they are resistance to start.