Indices Face Critical Fibonacci Resistance
Chris Kimble | Aug 24, 2022 10:41AM ET
Several major U.S. stock market indices have bounced over the past two months. But these moves higher are facing major tests right now.
And considering that we are in a bear market, these are just bounces until more constructive rallies occur with major resistance levels breaking along the way.
Today, we share a four-pack chart highlighting critical Fibonacci resistance levels on major U.S. stock market indices.
These indices include the Invesco QQQ Trust (NASDAQ:QQQ), NYSE Composite, Russell 2000, and Wilshire 4500. Each tested the 50% Fibonacci retracement level at (1) and reversed lower. Yikes!
These reversals also took place at each index’s falling 39-week moving average. Let’s just call this a “slow down, construction zone.” Should these resistance levels hold firm, it could mean a pullback or another leg lower. Careful here.
Several important tests are in play for the U.S. stock market simultaneously. Stay tuned!
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