Largest Bearish Reversal Pattern In 20-Years Forming?
Chris Kimble | Jun 29, 2020 02:30PM ET
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.
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