Bullish indicating open at $55-$60, IPO prices at $37
The August 5 low at 6320 has proven to be a pivotal inflection point for the E-mini S&P 500 futures. From this base, the market has carved a series of higher lows along an ascending trendline, confirming underlying bid support. This structure reflects a sustained recovery from the early-August sell-off and has now driven price into a decisive confrontation with the VC PMI Weekly Sell 1 zone at 6477.
This is not just a number on the chart—it’s a convergence point where multiple layers of technical resistance collide. Alongside the Sell 1 level, we have the 23.6% Fibonacci retracement of the prior swing and the upper bounds of a multi-session consolidation range. On the Square of 9, the 6475–6480 cluster aligns with a 90° rotation from the 6320 pivot, a natural resistance harmonic in Gann’s geometry.
Gann Time Cycle mapping from the August 5 pivot shows we are entering the first harmonic turn window—August 12–13—marking 7 calendar days (1/8 of a 56-day cycle) from the low. This is a critical decision zone where time and price balance. A sustained breakout above 6477 during this window would likely ignite the next leg toward Sell 2 at 6540, which is a 180° Square of 9 rotation from the 6320 low and also aligns with the upper channel resistance.
Momentum indicators are sending mixed signals. The MACD remains in slightly negative territory (-6.417) but has begun to flatten, hinting that bearish pressure may be waning. Volume patterns suggest that the rally has been supported by steady accumulation rather than short-covering alone, increasing the probability of a continuation if resistance is overcome.
On the flip side, failure to clear 6477 during this Gann time window could set up a classic mean reversion trade back toward the Weekly Pivot at 6401. That level is more than just a mid-point—it’s the battlefield between bullish continuation and a deeper retracement. A break below 6401 opens the path to Buy 1 at 6332 and the trendline/Fibonacci cluster near 6303.61, a level that coincides with the 120° Square of 9 rotation from the August 5 low.
Strategic Perspective
- Bullish Path: Above 6477 targets 6540, with potential extension if volume confirms.
- Bearish Path: Below 6401 reopens downside to 6332–6303.
- Time Factor: August 12–13 is the immediate Gann cycle turn window to watch.
This is the classic setup where both time and price have compressed into a narrow decision band. The market is whispering that its next directional move will be decisive—and traders attuned to this cycle geometry can position accordingly.
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