SP 500 Futures Key Levels & Analysis

SP 500 Futures

(ESH25) 

The chart below is key to this analysis.

There are two methods we use at ONE44 to find support and resistance in the markets.

The first are major Gann squares, these are the yellow horizontal lines on the chart. On the chart you can see where the market turned multiple times at these levels.

The second is Fibonacci retracements and this is what most of this post will be about.

There are a few basic rules when using the Fibonacci retracements with the ONE44 rules and guidelines.

This is the short version.

A 38.2% level keeps the trend intact and new highs/lows should follow.

A 23.6% level shows the market is extremely strong, or weak.

A 61.8% level can cause wide swings and keep the market in a trading range.

A 78.6% level can send it 78.6% of where it just came from and even be the end or start of a Bull market.

ESH25

From last week,

They started the week sharply lower, but failed to even get down to the 5993.00 major Gann square, keeping the trend extremely positive. The rally from there took it right back to the 6142.00 major Gann square, this will again be the key level for next week.

Use 6142.00 as the swing point for the week again.

The cluster of major Gann squares continues to be a very tough area to get through. It had a couple minor closes above 6142.00 and once back below it another sharp break has happened. We will see if this is the one that really takes the market lower. We will be watching all the levels below to see just how weak, or strong the market is, starting with the 5993.00 major Gann square. If this break is for real it should stay below 38.2% back to the 2/19/25 high, with Friday's low this is 6080.00 and it will be the key level for the week. You will have to adjust this level with every new low. With only a slightly higher high all the levels Above/Below remain the same.

Use 6080.00 as the swing point for the week.

Above it, with all the sideways trade for the last 3 months, once above 6142.00 it should go on another run higher. The short term targets are the next major Gann squares at 6290.75 and 6443.00. The long term target is the next cluster of major Gann squares at 7100.00. 

Below it, the idea of a longer term top from the cluster of major Gann squares is still intact as long as it remains below 6142.00. With it getting close to 23.6% at 5915.00 the short term target is now 38.2% of the same move at 5763.00. The long term target area is the 5566.00 major Gann square and 23.6% back to the 2022 low at 5530.00. The long term swing point remains at 5150.00. Any setback that can't close below the 5993.00 major Gann square keeps the trend extremely positive.

We have done 45 videos on how to use the Fibonacci retracements with the ONE44 rules and guidelines. These Videos are worth watching even if it is not in the market you are trading, as the ONE44 rules and guidelines are the same for every market. You will also see why we believe the Fibonacci retracements are the underlying structure of ALL markets.

Here is the latest.
 

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Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements, that we believe are the underlying structure of all markets and Gann squares.

If you like this type of analysis and trade the Grain/Livestock futures you can become a Premium Member.

You can also follow us on YouTube for more examples of how to use the Fibonacci retracements with the ONE44 rules and guidelines.
 

FULL RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Past performance is not necessarily indicative of future results.