Courtesy of Chris Kimble.
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The long-term trends for the S&P 500 and JP Morgan remain up. Despite the trends being up, both have made little upward progress over the past 6-months?
Any reason why they have struggled to move higher? One technical reason could be a Fibonacci Extension level!
We applied Fibonacci extension levels to the 2007 highs and 2009 lows for both in the charts above. The 261% extension levels for each were hit in January where upward price movement started stalling out. Since then both have traded sideways, potentially building a base to push higher from.
If the S&P 500 and JP Morgan both break above respective 261% extension levels, they would send strong bullish signals.
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