A Lesson in Gann

7. December 2008
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ESZ8 - I wanted to share an interesting daily chart of the ES.  The blue lines below were drawn purely using Gann calculations using one number, 1008.50, the high of 11/5/2008.  The light gray lines were drawn using these blue lines and one number, 8. It is quite amazing how the market followed these lines like a roadmap using a high set a month ago.

With the 34vw MA (maroon MA), horizontal Gann line (879), and a diagonal Gann angle all converging on that one spot, what does that tell us about Monday (2008.12.08)?  Perhaps a little resistance?

 
 
You think maybe all these Gann lines are just a fluke?  How about this weekly ES chart using 2008.10.08's high of 1586.75.  I also threw a measurement of the latest swings to show how there could be much more downside to come.
 

Lesson

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