The major Gann cluster between 3466.00 and 3488.00 can produce a bigger reaction then the market has been having on this current rally. It is important to note that all of the setbacks have held the tightest retracements keeping it extremely positive, so these are some of the things to look for, IF this area is going to turn the market lower.
Once they get up into this area the DSP for that day, IF taken out will tell us that the high for the day should be in and we will next look for the next most important short term retracement to be taken out. Provided this did happen, we will then look for a close below the previous all-time at 3397.50 for another sign of weakness, followed by a close below the 3370.00 major Gann square.
Failing to get to the major Gann cluster and closing below the previous all-time high would also be an indication of a top for now.
When and IF the market turns lower it should start to stay below the key retracements, just as it has stayed above them on this rally as marked on the chart below.
With a solid close above the top of the major Gann square cluster (3488.00) this will become the swing point for the short term and as long as they remain above it, the next short term target will be the next major Gann square at 3582.00 and our long term target will be the next major Gann cluster up at 3914.00 to 3938.00.
Until they have hit the major Gann square cluster the short term swing point is the major Gann square at 3370.00.
The first target on any break from this Gann cluster would be 3166.00, with a longer term target of 2970.00.