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A Bull Case For Stocks: Testing Critical Breakout Level

Published 01/23/2020, 03:30 PM
Updated 07/09/2023, 06:31 AM
Weekly S&P 500

Some price points lend themselves to potential turning points. The question? is the S&P at one of those price points? It may well be.

This chart looks at the S&P 500 over the past couple of years. Fibonacci was applied to the 2018 highs and 2018 lows.

The rally off the December 2018 lows has the index testing its 161% extension level at (1).

While at this extension level, momentum is the 2nd highest in the past 5 years.

The Fibonacci extension level becomes a price point where some stock-market bulls need/want to see a breakout. If accomplished, it sends them a strong bullish message

Stock-market bulls would receive a short-term concerning message should selling pressure or a reversal pattern take place at this key Fibonacci extension level.

Latest comments

Back to 2900 at least, and if logic prevails, should go back to 2134 before the bounce. But at least 2900
Erhmm... Are you serious? Seriously serious??
If he wasn't serious, do you think he would post it, seriously? :P. . Its called technical analysis and it does mitigate risk. Too many people think like they're on the international space station and gravity doesn't apply to them. Think!
  There's also FA and common sense. It's so over bought and we all know why. The FEDs funny money and WS doing the tax payers so hard.. You wanna be part of that? Fine..
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