Quick Update on the SPX Gann and Andrews Pitchfork
Jul 2, 2010: 2:36 PM CSTHere is the most recent update of the Gann Prices and Andrews Pitchfork Tool post series on the S&P 500. You’ll probably find something interesting about yesterday’s bounce price.
(Click for full-size image)
The horizontal green trendlines are Gann Squares prices originating off the March 6 2009 low.
Price peaked in April just above the 1,212 Gann number and supported off the 1,044 Gann number which held major support – that was one reason the break under 1,040 was so important.
In general, traders who use these Gann numbers watch for price to move from one Gann level to the next, and then try to identify if there are any other types of support, perhaps from moving averages or Fibonacci prices to locate ‘hidden’ confluences that other traders do not see.
It’s not magic, just one more variable to consider for potential price confluences.
And lo and behold, there was a major price confluence with two Fibonacci Levels – as I highlighted yesterday – at the 1,010 level which was Thursday’s low.
This adds one more bit of weight to the scale for the importance of 1,010.
And another quick note – price broke and closed under the lower Andres Pitchfork trendline – also originating from the March low.
The Andrews Pitchfork lines on the chart are rising blue ‘auto’ trendlines.
For Andrews Pitchfork traders, this was a major sell signal and potential turn (down) in trend. That’s another way to define trend, and for now, the signal is ‘reversal in trend.’
We’ll keep watching.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
