Unfamiliar with Gann Square Root Relationships? Learn more about them here.
Foreign Exchange Price & Time at a Glance:
Price & Time Analysis: USD/JPY
USD/JPY Strategy: Like being square for the time being, but may look to buy a break of 102.75.
Price & Time Analysis: USD/CHF
USD/CHF Strategy: May look to buy next week.
Focus Chart of the Day: S&P 500
The S&P 500 has rallied aggressively since reversing during last week's cycle turn window. A move through 1850 would confirm the significance of last week's low and set up a further push higher into the next turn date of importance in March and possibly even into 3Q14. Yesterday the index encountered good resistance near the 78.6% retracement of the year-to-date range at 1827. A retracement of the 80+ handle move over the last week seems natural. Such a decline could extend all the way to Gann support at 1780 without inflicting any real sort of technical damage. A move below 1780 on a daily close basis would begin to cloud the positive technical outlook, but only aggressive weakness below 1738 would completely undermine the positive technical structure. Such an occurrence would signal a major shift in the index's behavior and set up a more important distribution phase. This is not our favored scenario - just yet.
This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to the mathematical laws of nature and through the use of various geometric, arithmetic, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved