2 min read


Fibonacci chart of the week

ONE44 Analytics where the analysis is concise and to the point

S&P 500ESH21

The powerful run up since the 3/23/20 low continues and more amazingly they just keep holding key retracements on the rally. I guess I shouldn't say amazingly, as this is what should happen in order to keep the trend intact based on the Fibonacci retracements. As you can see on the chart below, every low that stands out on this move held either 38.2%, or 23.6%.

Monday's low was no exception. The close on Friday was just above 23.6% (2703.00) back to the 9/24/20 low. The Sunday night trade was below it and quickly got back above it. As outlined in our ONE44 Fibonacci rules and guidelines, they can trade below, but it is the close that matters. This is exactly what happened on 6/15/20.

Based on the Fibonacci rules, staying above 23.6% keeps a market extremely strong and quick moves usually follow, it is 38.2% that would have to be taken out to say the trend has changed.

Now for the major Gann squares,

Our long term target has been a cluster of major Gann squares up at 3914.00. This is an area where a larger than normal setback can come from. On any break from here the first place to look for support will be 3610.00, this is 38.2% back to the 9/24/20 low and then 23.6% (3475.00) back to the 3/23/20 low and a major Gann square. On a dramatic trade lower look for our long term swing point of 3225.00, this is 38.2% back to the 3/23/20 low.
Any break that holds even tighter retracements keeps the market very positive and with a solid close above 3914.00 the next target is another cluster of major Gann squares that we will cover once they close above 3914.00.

Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements and Gann squares.

This is our latest video in an ongoing series of how to use the Fibonacci retracements. Even if you do not trade the market covered the rules and guidelines are the same, as we believe the Fibonacci retracements are the underlying structure of all markets.