In following up on last night’s post on the “Gann Fan and Volume Update on the S&P 500,” I wanted to show a quick updated “Gann Fan” Grid of the S&P 500 – it’s also showing a critical level to watch at the 1,120 level which is – as we all know – a major inflection point in the market. Let’s take a look.
Here’s a little advanced analysis, or at least an example of “chart art” using Gann Squares (Square of 9) to show the Gann Lines both from the 1,576 high (first chart) and upwards off the 667 lows (second chart).
Let’s take a look and I’ll give a quick explanation of each chart.
First, we’ll start the Gann Squares of 9 Lines from the 1,576 high, which would be used if you assume we are still in a Bear Market and will find overhead resistance.
I’ve you’ve been following gold prices lately, you’ve noticed the precipitous plunge from the 1,025 per ounce high made just earlier this year. Rather than getting ultra bearish at these levels, let’s consider the possibility that a bounce may occur, or at least that gold prices are at critical ‘make or break’ short term price…