Just wanted to outline that the S&P is nearing the 1.618 extension target of its recent swing high to swing low.
This level is nothing to scoff at. It helped me predict where much of the profit taking would occur from the last major swing high to swing low well in advance. Those related ideas can be found here:
As you can see, the 1.618 extension of the last macro trend marked the top before the S&P saw a 10% decline to the $6,300 level.
So will the index see something similar play out again? Currently price is nearing the 0.618 and likely the key psychological level of $7,420. What is interesting is that if $7,400 to $7,500 is where this rally begins to fade and profits start to be taken, a 10% decline from there would put the index back at roughly $6,800.
The reason that level would be so significant is it would represent a test of the old highs and the past 1.618 extension rejection as new support. It would also align with the Point of Control on the VRVP, as there has been relatively little volume on this upward move, meaning that is where the majority of volume would likely appear on any pullback. The idea outlining the POC can be found here:
Would love to hear others' thoughts. Will this historic rally continue or will this be where the pullback begins?
This level is nothing to scoff at. It helped me predict where much of the profit taking would occur from the last major swing high to swing low well in advance. Those related ideas can be found here:
As you can see, the 1.618 extension of the last macro trend marked the top before the S&P saw a 10% decline to the $6,300 level.
So will the index see something similar play out again? Currently price is nearing the 0.618 and likely the key psychological level of $7,420. What is interesting is that if $7,400 to $7,500 is where this rally begins to fade and profits start to be taken, a 10% decline from there would put the index back at roughly $6,800.
The reason that level would be so significant is it would represent a test of the old highs and the past 1.618 extension rejection as new support. It would also align with the Point of Control on the VRVP, as there has been relatively little volume on this upward move, meaning that is where the majority of volume would likely appear on any pullback. The idea outlining the POC can be found here:
Would love to hear others' thoughts. Will this historic rally continue or will this be where the pullback begins?
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.