1 min read

S&P target hit

The rally back above the 3066.00 major Gann square today hit 23.6% back to the all-time high up at 3097.25 keeping this market extremely negative. They have now hit our second target zone of 2984.00 to 2970.00. This area is critical to the long term trend.  With the close below 2970.00, this now becomes the long term swing point. What I would watch for because of the wild swings is for the market to trade down to, or below the 1x1 angles coming from the August low between 2942.00 and 2910.00 and then by the morning be back above 2970.00, provided this does happen you could be looking at a bottom for the time being. The DSP will be the first thing to watch for any kind of a turn around and for tonight with the 2952.25 low that level is 3002.00. On any turn it would then have to get back above the 200 day at 3047.00 to confirm a bottom, this is also 23.6% of the move down.  Also watch MSFT and the FANG's, they are getting very close to the first downside targets I sent two day's ago.
Now, with 2970.00 being the long term swing point, not getting above 38.2% (2984.00) back to the Dec. 2016 low, it will be a very negative sign and by following the 38.2% rule and a failure to hold it, we should look for 61.8% of the same move. This is 2729.00, but there is a bigger retracement just above this at 2754.00, this is 23.6% back to the 2009 low. This is the next target area on a failure to get back above 2984.00.

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