It will also have the short term major Gann squares for short term support and resistance.
As you can see on the chart below, all the highs, or attempts to rally on the move down from the ATH held 23.6%, or 38.2% retracements keeping the trend negative. It is currently holding the 38.2% retracements on each setback with the current rally, (6/15/23 and 9/11/23).This week's high is now at the most important retracement back to the ATH, this is 35,700 and there is a major Gann square at 36,300. A setback from this area can send it to retest the lows. The short term target is 38.2% of the rally at 27,800. Taking out the 35,700 to 36,300 area will turn the long term trend positive and the next target is 61.8% of the same move at 49,250. There are 3 major Gann squares to watch for resistance before then at 40,032, 44,160 and 47,862.
It has now split the long term swing point at 35,700 that is 38.2% back to the ATH and the 36,300 major Gann square. Use 35,700 as the DSP for the week. A failure to get through this level can send it to retest last year's low. The short term target on a setback is 38.2% of the rally at 28,070, this is the short term swing point. Any setback that can't get below the previous major Gann square at 32,441 keeps the current leg extremely strong. Above 35,700 the long term target is 61.8% back to the ATH at 49,300. There are 3 major Gann squares before then to watch for resistance at 40,032, 44,160 and 47,862.
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