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S&P 500: Reversal Comes At Critical Fibonacci Resistance

By Chris KimbleStock MarketsMay 11, 2022 10:19AM ET
www.investing.com/analysis/sp-500-reversal-comes-at-critical-fibonacci-resistance-200623985
S&P 500: Reversal Comes At Critical Fibonacci Resistance
By Chris Kimble   |  May 11, 2022 10:19AM ET
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There have been lots of red investing screens in 2022 as the stock market correction/bear market has only intensified as the days wear on.

Sometimes zooming out to a longer-term picture of the market helps offer perspective. But that doesn’t necessarily mean it makes today’s picture less bearish!

Today’s chart takes a long-term monthly look at the S&P 500. We take the lows from 2009 and 2020 marked by each (1) and use applied Fibonacci for this particular analysis. This produces a 261.8 Fibonacci extension level that just so happens to rest near the 2022 highs.

S&P 500 Monthly Chart
S&P 500 Monthly Chart

This is not the best place for selling to start!

And there’s more; this also marks the upper end of a multi-decade rising price channel that marked the 2000 dot com high and the 1987 crash low and financial crisis low. There’s also a lot of room below if the selling continues.

Can bulls recover and push the price upward toward the top side of the channel? Or will bears remain in control and push prices lower? Stay tuned!

S&P 500: Reversal Comes At Critical Fibonacci Resistance
 

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S&P 500: Reversal Comes At Critical Fibonacci Resistance

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Comments (5)
Paul Browning
Paul Browning May 12, 2022 12:20AM ET
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It's clear to me that we have formed a 1 year top on the NASDAQ 100 and considering the current negative macroeconomics we're about to have perhaps the worst crash ever.
ZS Beck
ZS Beck May 11, 2022 10:03PM ET
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Fibonacci is useless with 8% inflation and the war in the middle of the EU, plus rate hikes Keep it simple, the stock market was hot, because of cheap money. It's gone for good and no we seeing a balloon 🎈 losing air. How far down? Nobody knows, but 1 thing is for sure. All those analysts out there who made believe regular people to Rivian is 140$ and the rest of the worthless stocks should be arrested and jailed.
Dion Argueta
Dion Argueta May 11, 2022 3:42PM ET
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I think we'll likely see some relief for the warmer months because people ate still out spending money. Revenues and earnings might still rise temporarily because of higher prices but when the warm weather goes away people will likely cut their spending. I guess the fed will succeed slowing spending and bringing down inflation but not too much likely till after summer weather abates !!!
Gideon Strassmann
Gideon Strassmann May 11, 2022 2:57PM ET
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you cannot take charts to buy food....(not in the CPI)
Chad Richer Than You
Chad Richer Than You May 11, 2022 10:32AM ET
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Brilliant
 
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