ONE44 Analytics where the analysis is concise and to the point
The break from the 1436.00 major Gann square and our long term target of 1410.00 fell short of the 1292.00 major Gann square and 1285.00, this is 23.6% of the rally. This keeps the market in a very strong position, however we have to look at all of the retracements and what they mean based on the ONE44 Analytics Fibonacci rules and guidelines. .
We know that a lot of failures to make new highs happen at the 78.6% level, this is now 1410.00, what makes this more important is, this is also 61.8% back to the all time high. In theory a break from 61.8% should send them 61.8% back the other way, this is currently 1030.00. It is not what we think is going to happen at this moment, however having tested the 23.6% level already, any failure to make a new high on this rally should send them down to our long term swing point of 1187.00, this is 38.2% of the move. This is the level that would have to hold to keep the idea that this is going to be a multi year rally as we have been saying since the fall of last year.
Key things to look for,
With them holding above 1292.00 the market remains strong and with a close above 1410.00 and more importantly above the 1436.00 major Gann square the next target area is 1580.00 to 1588.00, the first is 78.6% back to the ATH and the second is a major Gann square.
On the other side,
Failing to make a new high, or making a new high and closing back below 1410.00 should have the same effect and that is to look for 38.2% at 1187.00.
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These are our latest videos on 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.