Market Analytics and Technical Considerations
Since the Friday,
The 795.50 main Gann square was the trading range for the first four days of the week, but it was never capped beyond. The Friday finish was just below the major Gann square of 765.25. The 38.2% retracement established on 10/11.22 was the target for new lows, and this week’s break achieved that goal. If a 38.2% retracement took place in a week or took months, as it did from May to October of this year, the response ought to be the same.
NOW
The swing point for this week is the 765.25 main Gann square at this time. Find the 795.50 major Gann square above this, and the 736.25 major Gann square below it.
Synopsis
This week, the effects of the 78.6% retracement are clearly visible.
Any market that reaches 78.6% should move 78.6% in the opposite direction. Many bull markets conclude and commence here as well.
It is also the threshold reached most frequently when the market is reacting from 23.6% and 38.2% and fails to make the new high/low. When a market does react to 78.6%, it typically causes big swings that run through all the other retracements. A majority of Bull runs begin and terminate here.
For the time being, use 1481.00 as the pivot point in January and 1480.00 in March. The rule, we know that a deviation from 78.6% might cause a move in the opposite direction, so in January, the long-term aim is 1386.00, and in March, it is 1395.00. Sustaining current levels would be a very strong indicator for the market as the short-term goals on a setback from it now are 38.2% at 1433.00 in January and 1442.00 in March.
