11/8/20

ESZ20


The S&P has had two closes above the 3474.00 major Gann square and swing point. As long as it remains above it, look for the 3690.00 major Gann square. Longer term the target is the next cluster of Gann squares up between 3914.00 to 3938.00. One thing to watch for with new highs and this goes for all the FANG stocks (MSFT too), is they have all traded in a range for the last two months that have held key longer term levels below, so if they make the new highs and get right back below the current highs you could see a quick break. As with the 23.6% and 38.2% rule, just making a slightly higher high and getting right back below it is a negative sign. Since the S&P has held 23.6% twice already (3252.00) and the 3266.00 major Gann square, it is more likely that they go for 38.2% back at 3050.00 on the failure from new highs.

ESZ20