S&P 500 Posting Big Bearish Reversal In August
Chris Kimble | Sep 01, 2022 01:33PM ET
The stock market is falling once again, with the S&P 500 Index trading nearly 10% lower than its high just weeks ago.
In fact, that reaction high occurred this month, so the monthly candle is creating a very big bearish reversal. You can see this on today’s monthly chart of the S&P 500 below.
This reversal also comes after the index briefly poked above (retested) the 23.6% Fibonacci level, also at (1).
A reversal of this magnitude creates a lot of overhead supply (areas where trapped investors will sell to break even). In any event, this reversal is bearish, and active investors should use caution over the coming weeks and months. Stay tuned.
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