Daily December E-Mini S&P 500 featuring a 2-Day Gann Swing Chart
Although the 2-Bar or Main Swing Chart is indicating the trend is down based on the series of lower-tops and lower-bottoms, Tuesday’s (10/4) closing price reversal bottom suggests that a short-term bottom is in the works.
Based on the last swing down from 1190.00 to 1068.00, expectations were for a minimum 50% rally in 2 to 3 days. This objective was reached on Wednesday when the market tested and exceeded 1129.00. The next upside target was the Fibonacci retracement level at 1143.25. This level has also been exceeded, indicating strength, but not enough to turn the main trend to up.
Since the main trend will remain down as long as the top at 1190.00 remains intact, we could still see selling pressure even though both retracement objectives have been exceeded. The first sign of weakness will be a break back under 1143.25 and 1129.00. Should this occur, then it will appear as if the shorts have control of the market once again. This could set up a break back to at least 1112.00 over the near-term.
