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Largest Bearish Reversal Pattern In 20-Years Forming?

ByChris Kimble
Published 06/29/2020, 02:30 PM
Updated 07/09/2023, 06:31 AM

NYSE Index Monthly Chart

Is the New York Stock Exchange Index (NYSE) sending one of the largest bearish messages in years? It's possible. 

This chart looks at the NYSE index on a monthly basis over the past 13-years. The index spent the majority of the past 11-years inside of rising channel (1).

The weakness in March took it below the support of this rising channel for the first time in a decade. The rally since the March low currently has it kissing the underside of the channel at (2).

While kissing the underside of the channel and its 61% retracement level of the large decline this year, the index could be creating one of the largest bearish reversal patterns in 20-years.

The end of the month takes place this week. Where the NYSE index closes out the month could end up sending a very important message from this very broad index.

Latest comments

Chris shining Powell’s jewels
PS, as long as Fed keeps printing a lot, mkt overall will go up; it's a 100% correlation, look at a chart of it; all those new dollars have to go somewhere
Chris, I have found that looking at a candle before it is completed is usually a bit fat waste of time. But you have a lot more experience than I! Always appreciate your articles, Bryon
haha true especially in this kind of mkt.
The market is manipulated and has been for years. All these current events like the PLANdemic  are already priced in.
The monthly NASDAQ price chart has made a negative divergence between RSI and price. This is extremely bearish as well.
Unless COVID numbers start going down, all bets are off for the markets...
no one really cares about covid. people are buying because of cheap money and fed on your side buying
 - sure, wait until more states decide to NOT re-open and see what happens, but keep on buying, go for it.
that's the reality. qe money flowing into capital markets but real economy not picking up.
Nothing you ever predict comes to fruition. I find your work though provoking but very frustrating. Take a position.  Everything is possible! How likely is it though?
He's wrong until he's right.
If covid 19 resurgence in Tx and Fl are not the catalyst for the sell off then ...any thoughts on what will be the catalyst??
holy republican! Well do ICU capacity stats count as phony?
1) BLM causing widespread chaos is multiple major cities, overwhelming one police precinct after another; taking over Washington D.C.; Trump having to be evacuated from the White House; 2) Joe Biden becoming next POTUS (very bad for business); 3) North Koreans accidentally detonating a nuke inside their own country (or a successful coup on the part of North Korean military); 3) Covid-19 causing widespread deaths among the younger population as well as the elderly and spreading like wildfire; 4) widespread housing evictions from people not paying rent, coupled with continued record unemployment, coupled with end of stimulus packages, coupled with end of extra unemployment payments. These are all things that alone or together could tank the world's stock markets.
, please slow down, gather your thoughts, and breath.....
the biggest bear trap in the world is in thinking the market will go down just because it's been trending higher for 20 years.
It's funny seeing all the Bears crying that the market is going to fall, the end of days, not believing their eyes the market keeps going up, blaming the fed, etc etc. reminds me of the crowds claiming for the witches to be burnt
Can you just say up or down?
please sell! sell everything! ready for the big short! everyone can become millionaire, hahahahaha!
WOW
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