Dear GUNNER24 Traders, 

The 1:3 Trade: Sell S&P 500 Index at 1975 

Our 1:3 trades are A) adjusted to a longer term, having a spacious stop-loss for the development not to be endangered and B) have to show a risk-reward ratio of more than 1:3. 

S&P 500 Index was expected to reach 2005 pts in September. 2005 is lower line of 3rd resistance in overall ruling monthly 13 Candle up setup. 

Above the ruling monthly setup as presented within Trade of the Day 09/09/2015 for the bigger view. 

Lower line of 3rd was strongest identifiable resistance for market in monthly time frame. Thursday 17th after FED announcement index topped and turned at 2020.82. For whole September index closed just for 2 individual hours above 2000 treshold and just for 1 hour above 2005 monthly resistance on 17th. So for sure “round” 2000 and the 2005 morphed into important confirmed resistances on MONTHLY + YEARLY base. 2000 + 2005 are now most important resistances for current bull run, for rest of 2015 and for year 2016 and later... 

After reaching and working off the 2005 index is now expected to head south for the serious test of current correction low. This next test of current correction low might end little bit higher as 1867.01-August low, might be at same level, normally would be that downswing from 2020.82-September high delivers the lowest low of correction. 

This final correction low usually should arrive between 1860 and 1738, thats monster horizontal support area. With 1860 market would deliver a small lower correction low. Another possible final correction low area is the 1825-1830 support, this downtarget is derived from current valid daily 5 Candle GUNNER24 Down Setup. The ruling weekly down setup starting at alltime-high (ATH) – watch next chart for this – offers the 1820-1840 support area as possible end of correction. 

What happened since ATH, and what is going on in weekly time frame currently?!: 

Ruling weekly down setup starts at ATH and is an 8 Candle down. 

After ATH market has held Blue Arc support for 12 more weeks, then it plummeted into 1867.01-correction low made at # 15. 13 weeks after ATH, the sell-off week # 14 broke Blue Arc + first square line and 1st double arc support in one go and # 15 pierced 2nd double arc deeply at current correction lows. 

But whole correction is defending 2nd double arc on closing base. The 2nd double arc has a lot of importance for market cause we observe the weekly close of # 16 exactly at lower line of 2nd double arc and last week (# 18) closed shy above upper line of 2nd support. 

Last week seems very important according signaling and according shortterm direction: 

==> At high of # 18, the September high, we observe a classic backtest of formerly broken lower line of 1st double arc resistance. So September highs have tested back a weekly resistance to the T! 

And obviously this test looks strongly negative cause rejection from the lower line of 1st resistance was brutal into past week close at 1958! 

==> Think 2020.82-high was a Kiss of Death in weekly time frame cause week # 18 has traded on important time line. Important time lines always offer an important top or low cause there volatility is at extremes! Well, for now I suppose that extreme of # 18 was an important high at combined weekly and monthly resistance, and market should head south now into week # 21 for the final correction low. 

Sell-targets area 1860, resp. 1840-1820 at 3rd double arc support. Price targets should be achieved in week of October 5-9! 

Also daily time frame shows a Kiss of Death event at 2020.82 September high: 

Day # 18 (September high) of bounce kissed main resistance coming from Dec-14 and the former year 2015 low made on 02/02/2015. This Feb-15 low is important for market cause it was the absolute low of year till breakdown on August 20! 

==> September high has tested back this main resistance, together with an exact hit of a GUNNER24 Diagonal that can be anchored at some important inflection points of setup. 

==> Summarized: 2020.82 has met visible resistance in monthly + weekly + daily time frame, so its a huge combined resistance and usually a very important top for market. Downwards into the important downtargets it should drop further... The final low for this correction is now expected at/near day # 34 after bounce has started at # 1. 

==> Watch now close of last candle, Friday, shows hit at lows with 2*1 Support Angle and day closed above 2*1 Support Angle who is derived from current correction low! Means, although Friday delivered a daily sell signal cause the Blue Arc support was broken downwards on closing base the current ruling bounce support has held with Fridays close! This allows a backtest of the Blue Arc support till Wednesday/Thursday!! 

We sell the index at 1975 Blue Arc resistance till Thursday, 24! After a possible Blue Arc backtest index should decline further: 

Interstations into correction low expected at/near day # 34 = October 9: 

1931 at middle of first square (should be reached immediately after a negative Blue Arc backtest) 

the 1895 at 1*2 Support Angle for end of September. 

Final correction low should arrive between 1860 and 1820. 

As usual we are conservative with expectations, accordingly the 1860-GUNNER24 Monthly Horizontal Support becomes downtarget for this 1:3 trade sell short setup! 

SL for the short trade is placed at 2010! 

Risk = 35. Potential reward = 115. Risk-reward ratio 35/115 or 1:3.29 

Please use ETF, options, CFDs or warrants reproducing this trade. Sell if S&P 500 Index trades at 1975 till Thursday. 

GUNNER24 Trade of the Day order for 09/21/2015: 

Market: S&P 500 Index 

Orders: Sell-Limit at 1975. Stop-Loss (SL) at 2010. Sell-Limit order valid till 09/24/2015. Shortterm downtarget at 1860. 

Eduard 

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With the close at 1931.34 of last Friday, admittedly the very important combined daily and weekly 1931 horizontal was defended again – indeed narrowly, with a buffer of only .34 – BUT last week being # 19 of the current correction closed newly below the 2nd double arc that altogether gives support to the whole correction.

==> Consequently, last week generated a clear sell signal in the weekly time frame!

Thus, another strong down-pressure should be reckoned with, supposed to lead the market quickly and swiftly into the support of the 3rd double arc. I strongly work on the assumption that another 5 – 7 day panic cycle will start the soon leading the market into the likely washout low of this correction in a kind of sell-off way.

==> I think that the whole correction will finish with the low of the 21st correction week!

As explained above already, this washout may/should be wrapped up either on October 8, yet more likely on October 9 (being the 34th!!! day after the 1867.01 August low) respectively on Monday, October 12.

The washout low might be achieved a little bit higher as the 1867.01-August low, might be at same level, normally would be that downswing from 2020.82-September high delivers the lowest low of correction at/close to A) 1860, that’s very strong monthly GUNNER24 Support Horizontal, resp.. B) somewhere between 1840 and 1820 = at 3rd double arc environment in the determinating weekly 8 Candle GUNNER24 Down Setup!

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!! Important announcement: I’ll take a week off again leaving for vacations with my family.!!

Thereby, the coming 2 Sunday issues of the free GUNNER24 Forecasts are omitted. Correspondingly, the next free GUNNER24 Forecasts will be issued on October 18, 2015!

Be prepared!

Eduard Altmann

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