ABCD study hints more upside

FX:SPX500   S&P 500 index of US listed shares
149 2 1
Index has shown a perfectly symmetrical pace up in both
legs of the minor ABCD and has cut through the D-point
without much hesitation. Which major resistance level can
be seen using harmonic patterns and fibs? Both these
ABCD patterns points to the same exact level, which is 1978.
That is the 161 extended D-point of larger pattern and also
the 127 extended D-point of the minor or latter ABCD. Such
perfect confluence would very likely cause index to halt.
It is unlikely that index will leave such a big level behind
(and the close by level 2000 of course). a bounce from current
level should find support around 1785 (also monthly pivot S1)
and 1700. Above that Monthly Pivot Point at 1822.
can you explain why you drew the fib from the levels you chose? none of the retracements are valid?
Yes they are. When you draw two identical AB and CD legs, you measure the fib extenstions of the CD leg by drawing the fibs. The
retracement levels are of no importance in this particular case, thus I could have removed them, still, what is important is the
extensions to find the extended D point. To leave the retracements level there can be of interest if you eye glance the chart
to see how price/index has behaved at those particular levels. Retracements are also used to find target levels of completed
pattern. I suggest you look at other of my charts to learn more of this particular method.
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