S&P 500 Index: Wrong Place For Bearish Reversal Pattern!

Sharing is Caring!

by Kimble Charting

The month of September ushered in some volatility to the stock market… volatility we had not seen in quite a while.

Perhaps it will continue into October. And perhaps there is a reason.

Today we take a look at a long-term “monthly” view of the S&P 500 Index.

As you can see, the S&P 500 has been in an up-trend for over a decade. And this August, the Index closed the month at its 423.6% Fibonacci extension level at (1). That closing also coincided with the underside of 11-year resistance.

See also  The price is wrong on EVERYTHING. Fed admitting to remove data from their nominal yield curve model because some "there were large and persistent fails-to-deliver" on some notes.

The last time the S&P 500 hit a key Fibonacci extension level (161.8%), it also was testing the underside of this very same resistance… and it lead to a 2-year pullback / stakeout.

The 423.6% Fib test in August was followed up with a large bearish monthly candle in September at (2). Follow through selling in October wouldn’t be a good sign.

See also  McCullough: The Street Is Wrong on Economic Growth (Plus Asia Allocations & Bond Yields)

Wrong place, wrong time for this pattern in the S&P 500? Stay tuned!

This article was first written for See It Markets.com. To see the original post CLICK HERE.

720 views

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.