Courtesy of Chris Kimble.
Even though stocks have been weak of late, breaks of certain price levels could actually trigger much more selling than stocks have seen so far.
This 4-pack applies Fibonacci extension levels to the S&P 500, Dow, Nasdaq 100 and Transports. Each of these indices hit key extension levels earlier this year at each (1), where strong uptrends looked to have potentially ended.
Each index is now testing the bottom of 2018 trading ranges and long-term rising support at each (2).
If these multi-year support lines are broken to the downside at each (2), look for selling pressure to increase from what we have seen of late!
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