A Bull Case For Stocks: Testing Critical Breakout Level
Chris Kimble | Jan 23, 2020 03:30PM ET
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.
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