Sharp eye on the S&P 500 - Mighty resistances threatening since Monday

Last week, we saw strong stock markets, with ascents of more than a 5%. The call saying we have passed the lows seems to be true. At the end of May, GUNNER24 prognosticated the target of 1010 for the S&P 500. It was reached on 07/01 with 1010.91. Our impression of that low was as follows: „1010. Exactly on the time line, exactly on a price and time magnet, the week low was marked. It cannot be better. We should have/be to turn upwards now. The next week candle ought to confirm that.”.

Last week's candle confirmed the low impressively. While the S&P 500 even put down a weekly reversal candle – that was denied to the future contract. During the last three minutes of the after hour trading the price “sank” by four points. Having a look at the weekly 2 Candle GUNNER24 Down Setup we see that the future seems to have anticipated the next beginning of the week, to have “felt” the threat. As well on daily as on weekly and on monthly basis, the S&P 500 awaits some resistances which are extremely difficult to overcome. They should be taken seriously. 

In the 2 Candle GUNNER24 Down Setup left, we see that next week as well the 2*1 Gann Angle starting from the April high as the blue arc will have to be re-conquered to confirm the new upwards trend. That won't happen without some extensive tests, I suppose.

In the daily 2 Candle GUNNER24 Down Setup we make out that as early as Monday opening the market will have to fight with two striking resistances which most probably ought to stop the new upwards trend: 1. The important 1*1 Gann Angle that divides the setup into a bullish and a bearish half, you know. Still the market is in the bearish half. On Monday, the third test is waiting. According to Gann, a significant break of the angle in the third try is rather unusual, but it's possible. The 1*1 Gann Angle is not likely to break before the forth attempt. 2. The 5th double arc lying above the price. It should be difficult to be broken. Both resistances together make me suppose that in any case on Monday for the fifth consecutive day we shall see a new high. The actual 4 hour GUNNER24 Up has not broken the 2nd double arc completely. In case of a break it points to a main target of 1085 to 1090 (3rd double arc).

Our plan for the week: Because of the mentioned resistances, since Monday we expect a three day retracement. If Monday closes at 1090 as well the 1*1 Gann Angle as the 5th double arc shall have been broken significantly confirming the new upwards trend. In that case we will experience an 8 Candle GUNNER24 Up Setup instead of a 5 Candle GUNNER24. If on Monday the Friday low at 1068 is reached we will cover our longs because that would also point to a 5 Candle GUNNER24 Up. In that case, at the middle of the week we would look for another useful long entry since we would speculate on a successful forth attempt of the 1*1 Gann Angle break.

Both following Monthly GUNNER24 Setups of the S&P Continuous Contract should show us likewise what a hurdle the 1077 in the S&P 500 represent:

In the actual down setup we make out that the 1072 in the continuous contract are the line in the sand. That is where the 2*1 Gann Angle proceeds that takes the setup as a starting point. It represents a resistance. We recognize that during the last months everything was about that 2*1 Gann Angle: Broken in March, broken in May, and now in July it would like to be re-conquered.

The chances for that are not bad because it is looking as if the July 2010 low might be marked at a significant price and time magnet. The intersection point of the green dotted diagonal (offering recognizable monthly support) of the just passed square and the upper line of the 2nd double arc is such a magnet, and frequently those magnets generate enormous energies in order to break pretty easily some strong resistances lying above the price – as in this case.