ONE44 Analytics where the analysis is concise and to the point
In our last post NASDAQ 100 fails first test we showed you what caused the sharp rally up from 13,050 to just short of 38.2% back to the ATH and we left you with this...
Yesterday's high fell just short of the 14,466 major Gann square and 38.2% of the move down from the ATH. Following the ONE44 Fibonacci rules and guidelines, we know a break from here should send it to new lows. A sign that this is what they will try for next is, to watch 38.2% of the move up at 13,880, a close below there today would also get it below the 13,913 major Gann square. Provided this does happen, look for it to go for the lows again.
A level to watch on a failure to make a new low is 78.6% of the same move at 13,350. As the 78.6% rule states, this is where a lot of Bull runs start and end. We also know following the 38.2% rule, that a failure to make a new high/low after holding 38.2% should send it to 61.8% of the same move.
A close above 13,880 today can send it back to test the key level of 14,466 and until this level is taken out the short term trend remains negative. A close below 13,880 should send it to the lows again and any failure to make a new low that holds around 13,350 (78.6%) can send this on a quick rally up to 61.8%.
On Friday it closed below 13,880 and today hit 78.6% at 13,350 and following the ONE44 78.6% rule,
Any market that hits 78.6% should go 78.6% back the other way. This is also where a lot of Bull markets end and start.
So, by holding 78.6% on the break after retracing from 38.2% back to the ATH and knowing that this is where Bull runs can start, the next target would be 61.8% at 15,300. The 2/24/22 low also held a major area of support between 13,050 and 12,880 and this can send it back to test the ATH.
To Be Clear, as we always say, we watch all the retracements on every move to see just how weak, or strong the market is regardless of the long term target. We now know what is possible if it fails to make a new low here after setting back from 38.2% (14,450) and with a new low and close below 12,880 much lower prices are coming. Keep watching our website for the update if new lows are made.
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