Courtesy of Chris Kimble.
The economic recovery and ensuing bull market off the 2009 financial crisis lows has been one of the longest in history.
And over that stretch of time, the S&P 500 Index has reached technical milestones. While making new all-time highs, the index rallied past big round numbers like 2000 and 2500, and Fibonacci extension 161.8 before reaching its Fibonacci 261.8% level, based upon the 2007 highs and 2009 lows.
In the process of reaching the 261.8 Fibonacci extension, the S&P 500 saw its momentum slow and the S&P 500 broke its long-term uptrend line (1).
Over the past 18 months, the index has carved out 3 peaks (of sorts). And, in doing so, momentum has produced a lower high at each (2).
The latest peak comes at a “kiss” of the underside of that long-term uptrend line. And the recent selloff has the S&P 500 breaking below its short-term rising uptrend line off the December 2018 lows. This isn’t a good look for the market.
Stock market bulls do not want to see selling accelerate here, they want to see a breakout above the 261% level!!! If the S&P breaks above the 261% level, a STRONG bullish message would be sent!
This article was first written for See It Markets.com. To see original post CLICK HERE.
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