For the S&P 500 index, the 2102 resistance magnet was compellingly necessary to be worked off in the current month of April. As worked out at the beginning of April, an important Resistance Angle is situated there that as soon as during the final high of November 2015, exerted strong attraction force and resistance function:

 

Source: www.GUNNER24.com/newsletter/nl-040316/

 

The Resistance Angle anchored in the chart above originates in the alltime-high (ATH). Last it was tested back negatively, inter alia exactly at the important lower high of November 2015. There, at 2116 the last dramatic correction move began, going down 216 points and comprising 3 months! On yearly base, the Resistance Angle was important for the year 2015, as its origin was in 2015, and its negative backtest ensued in the same year. Thus, it’s matter of both important resistance in the yearly time frame and a so-called alltime-high resistance = thereby being a very important, even the currently most important resistance for the entire year 2016.

==> If this Resistance Angle is overcome on monthly closing base within the next 2-3 months, we’d have the signal that still in 2016 some new alltime-highs will become compellingly necessary!

For April, the Resistance Angle takes its course at 2103-2102, for May at 2099-2098, for June 2016 at 2096-2095. If the S&P 500 closes above those ATH-resistance ramparts specifically related to the mentioned months, we’d have a monster buy signal with target 2500!!!

Now that in the course of the last trading week, the S&P 500 succeeded in working off its most important resistance for 2016 and likewise important upwards magnet of the year 2016, a several week correction can resp. may start "at last" now.

The likely targets in terms of price and time of this now upcoming correction in the weekly and daily time frames can be derived as follows:

==> At the beginning of the analysis her come a couple of important marks and observations of the last trading week. Rally high was on Wednesday at 2011.05. Therewith the Resistance Angle (at 2102-2103 for April) was certainly just exceeded in terms of price. All the same, with this the S&P 500 quoted clearly below the important lower November 2015 high. As many as 5 hour closing prices above 2103 points succeeded on Wednesday. Thus, the time factor is showing a rather weak test behavior at the ATH resistance.

Since Wednesday closed at 2102.40, a daily close exactly at the Resistance Angle succeeded. Thereby, on daily closing base the index could not overcome the Resistance Angle but test back this ATH resistance most exactly, concerning this specific performance. Then on Thursday, the correction widened.

The weekly closing price is at 2091.58. Thus, to crack the extremely important 2103-GUNNER24 Horizontal did NOT succeed AGAIN:

 

 

This 2103 horizontal is derived directly from the first initial 12 candle weekly up impulse that emerged from the important low of October 2014.

The 2103 horizontal is the first square line within the weekly 12 candle up presented above.

Since the beginning of 2015, the 2103 has been playing a chief part in the S&P 500. At the beginning of 2015, first the index oscillated thereabout, so to speak using the 2103 horizontal as pivot (orange dotted).

After the first important tough correction move began at the red oval, the lower line of the 1st resistance main target (07/2015 high) having been worked off, ending the move at the Blue Arc support (watch the blue oval), this 2103 horizontal appears unambiguously as persistent resistance horizontal (red dotted). To test the 2103 = watch all the red arrows – is allowed. Weekly close above it isn’t!!!

 

Last week/candle was newly "allowed" to test the 2103. To close above it was not allowed again.

Certainly interesting is also the fact that the 2103-weekly closing base horizontal is reached again exactly in the month when obviously ATH resistance exists for this month at 2102-2103. Well, I mean, that’s it with the rally. In almost every important higher time frame, at 2102-2103 last week reached and worked off multiple important resistance. The market should have to tank/correct now.

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Attention please! The following BEAR ALARM is present:

By means of the multiply confirmed importance of the 2103-GUNNER24 Horizontal, it would certainly take just a very first weekly close above the 2103 for the new alltime highs to be reached perforce. A weekly close above 2103 will make new alltime-highs compellingly necessary!!!

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In regard to the great number of resistances reached by the last week candle, just pay closer attention to the 2011.05-top environment. The top entered at the lower line of the 2nd double arc resistance. A main resistance and another main target in the weekly time frame being worked off…

A One…

A Two...:

 

 

Nice to recognize that as well the measured up-move fromt October 2014 low to important lower July 2015 top (altogether 41 weeks upwards) puts out that last trading week a main target was reached + worked off and that a correction phase is now upcoming almost compellingly.

The Support Angle is the potential main target of this correction!

A Three... and it goes on with the reached important double arc resistances in the weekly time frame. Indeed with those ones that can be derived directly from the February 2016 low:

 

 

Measuring 3 Candles up impulse we realize that the 2011.05 top of last week reached exactly the main countertrend target of the lower line of the 2nd double arc. If the up move that started at the February 2116 low is "only" matter of a countertrend – the probability to be is still at scarcely above a 50% since the S&P 500 still displays lower highs and higher lows in the monthly time frame – that will have been it with the whole recuperation move for 2016.

I mean, the 2011.05 might thoroughly have been the final high of the year 2016. With all the resulting consequences. According to that, the first important consequence in the medium term would be a re-test of the 1810 mark in summer 2016.

However, for the time being, we should reckon "just" with a moderate correction that comprises a backtest of the upper line of the 1st double arc – since finally broken upwards sooner = first very strong weekly Gann support!

The Support Angle intersects the upper line of the 1st double arc support at 2022.50, thus forming an interesting down magnet for the coming correction.

And... A Four...

 

 

Measuring now 5 (the next higher Fibonacci number after the 3) Candles up impulse beginning at the important February 2016 low, we see that the 2011.05 top of last week here again worked off a GUNNER24 Double Arc line resistance! In the setup above, the important weekly uptarget of the lower line of the 1st was reached + worked off!

The 2011.05 top thereby met four resistance arcs existing/being present in the weekly time frame, based on lows of the years 2014 and 2016 of different importance.

==> MAJOR RESISTANCE MAGNET was reached at past week highs!!! ==> A correction will have to be expected almost compellingly!

With the 2022.50-double correction support magnet another horizontal support consorts in the weekly time frame. In the 5 Candle up, the natural support of the first square line horizontal exists there!

==> Thus the 2022.50 is indeed a triple Gann support in the weekly time frame and with it the very strongest attraction price for the upcoming correction = main target at 2022.50.

==> The 2022.50 can be expected to be reached in exactly 4 weeks since that’s where the Support Angle starting from the October 2014 low intersects the first square line in the 5 Candle up and the upper line of the 2nd double arc support in the 3 Candle up.

==> At 2009.50 there is a weekly double Gann support magnet formed from the Blue Arc support in the 5 Candle up and the lower line of the 2nd double arc in the 3 Candle GUNNER24 Up. The 2009.50 is supposed to be reached within the next 4 to 5 weeks, after only one weekly close below 2020.

 

Be prepared!

 

Eduard Altmann