SP 500 Futures
The chart is key to this analysis.
From last week,
The cluster of major Gann squares continues to be a very tough area to get through. It had a couple minor closes above 6142.00 and once back below it another sharp break has happened. We will see if this is the one that really takes the market lower. We will be watching all the levels below to see just how weak, or strong the market is, starting with the 5993.00 major Gann square. If this break is for real it should stay below 38.2% back to the 2/19/25 high, with Friday’s low this is 6080.00 and it will be the key level for the week. You will have to adjust this level with every new low. With only a slightly higher high all the levels Above/Below remain the same.
Use 6080.00 as the swing point for the week.
Below it, the idea of a longer term top from the cluster of major Gann squares is still intact as long as it remains below 6142.00. With it getting close to 23.6% at 5915.00 the short term target is now 38.2% of the same move at 5763.00. The long term target area is the 5566.00 major Gann square and….
This week’s break took the market to the 5850.25 major Gann square. There was an initial bounce from 5915.00, however as we mentioned last week that the market needed to stay below 38.2% at 6080.00 to keep the short term trend negative and that with any new low this level would have to be recalculated. With the new low at 5924.00 on 2/25/25 the new 38.2% was 6018.00, it traded slightly above it, but never closed above and then went on to a new low as would be expected from a 38.2% retracement. The rally Friday from the 5850.25 major Gann square hit 38.2% back to the 2/19/25 high at 5969.00 and this will be the key level for the next week.
Use 5969.00 as the swing point for the week.
Above it, The short term target is 78.6% back to the 2/19/25 high at 6098.00. For the long term with all the sideways trade for the last 3 months, once above 6142.00 it should go on another run higher. The short term targets are the next major Gann squares at 6290.75 and 6443.00. The long term target is the next cluster of major Gann squares at 7100.00.
Below it, the short term target area is 38.2% back to the 8/5/24 low at 5766.00 and the 200 day average at 5752.00. The longer term target area is the 5566.00 major Gann square and 23.6% back to the 2022 low at 5546.00. The long term swing point is 38.2% of the same move at 5153.50, this is also a major Gann square.
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