Wednesday's attempt to rally was stopped by 23.6% back to the 3/28/22 high and the 40,032 major Gann square. The 78.6% level at 36,300, which was also a major Gann square, failed to turn the market back up and now we will see if the January low gets taken out. Provided that low comes out, look for the long term target of 61.8% at 28,000, this is 61.8% of the ATH and 2018 low. Not making a new low should send it to 38.2% of the last leg down at 39,500 to start.
The rally from 61.8% (2714.00) on 5/2/22 that was also a major Gann square failed to get up to 38.2% of the 4/4/22 high. It has one more area to look for a possible rally at the 2509.00 major Gann square and 78.6% at 2470.00. On any rally from this area, the first test of its strength will be 38.2% back to the 4/4/22 high, this is yet to be determined. A failure to get a rally from there should send it down to the long term target of 1900.00, this is 61.8% of the ATH and the 2018 low.
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