Applying Gann Lines to a chart is not as simple as slapping down a protractor on a chart and proceeding to draw angled lines emanating from a significant high or low. The proper way to do it is to employ the mathematics that support the Square of Nine (square root) concepts. I discuss this methodology in the book I am currently finishing off.
In any case, the S&P 500 is very much in the news these days. Will it power higher or will it start to fade?
Applying Gann Lines can give one a different sense of where the S&P has come from and where it is at.
I have undertaken this exercise using as a starting point the March 2009 lows. From these lows I have extended 3 Gann Lines that help to show how the S&P is behaving. Note that the efforts in the chart that you see are not pin-point precise. If that degree of precision is required, one should use graph paper and a sharp pencil to chart and to overlay the lines.
As this chart shows, price action is being guided higher by the 4×1 line. Using the Square of Nine concept further, one can calculate overhead resistance levels using the Mar 2009 lows as a starting point in calculations. This bit of math tells me that as of now overhead resistance lies at 1513 and then 1552.