SP 500 Futures

The chart below is key to this analysis.

There are two methods we use at ONE44 to find support and resistance in the markets.

The first are major Gann squares, these are the yellow horizontal lines on the chart. On the chart you can see where the market turned multiple times at these levels.

The second is Fibonacci retracements and this is what most of this post will be about.

There are a few basic rules when using the Fibonacci retracements with the ONE44 rules and guidelines.

This is the short version.

A 38.2% level keeps the trend intact and new highs/lows should follow.

A 23.6% level shows the market is extremely strong, or weak.

A 61.8% level can cause wide swings and keep the market in a trading range.

A 78.6% level can send it 78.6% of where it just came from and even be the end or start of a Bull market.

We have done 43 videos on how to use the Fibonacci retracements with the ONE44 rules and guidelines. These Videos are worth watching even if it is not in the market you are trading, as the ONE44 rules and guidelines are the same for every market. You will also see why we believe the Fibonacci retracements are the underlying structure of ALL markets.

This is the latest.

…………..

10/20/24

SP 500 Futures

(ESZ24) 

From last week,

The setback after hitting 78.6% at 5807.50 could only get to 23.6% back to the 9/6/24 low at 5727.00 keeping this market extremely strong. The rally from it closed above the 5850.75 major Gann square.
 

Use 5850.75 as the DSP for the week.

This week's low held the 5850.75 major Gann square perfectly and it will be key for the next week as well.

Use 5850.75 as the swing point for the week again. 

Above it, the long term target area above is 6102.00 to 6142.00. Before then there is one major Gann square to use as a target and then as the swing point when closed above at 5993.00. 
 

Below it, look for the area of 23.6% back to the 8/5/24 low at 5735.00 and the 5706.00 major Gann square. The short term trend swing point is 38.2% of the same move at 5620.00. Any setback that holds 23.6% back to the 9/6/24 low at 5800.00 keeps this market extremely positive and new highs can quickly follow, just as it did on 10/8/24. When and if this market has a more serious setback you can look for 5337.00, this is the 200 day average and 23.6% back to the 2022 low. The long term swing point is 38.2% of the same move at 5005.00.

You can see on the chart all the key highs and lows that came at a Major Gann Square (yellow horizontal lines).

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ONE44 Analytics where the analysis is concise and to the point

Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements, that we believe are the underlying structure of all markets and Gann squares.

If you like this type of analysis and trade the Grain/Livestock futures you can become a Premium Member.

You can also follow us on YouTube for more examples of how to use the Fibonacci retracements with the ONE44 rules and guidelines.

FULL RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Past performance is not necessarily indicative of future results.