SPX500 has just hit a massive resistance zone. Cluster includes Genesis, Covid, and other fibs. Expecting a reaction here, perhaps a local top?
5109 - 5166 is the exact zone of interest. 4896 - 4901 is the first good support below. 5429 - 5493 is next major resistance above.
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Pullback underway: Initial rejection at the lower bound of our resistance zone
That ldashed ower bound fib is from the "Covid Stimulus" wave, here is the full view I make it dashed on my charts so that I always know which fib I am looking at in small timeframes.
For better clarity, here is the same fib with solid lines, and "Pings" shown "Ping"=Exact ricochet from fib that you can almost HEAR. The many Pings thus far give us confidence in the sister fibs.
So even though we have NEVER been here before, we could still project THIS precisely: that 500 large companies, each with 100's of variables, AVERAGE price would react here EXACTLY!
Thus my continued AWE of the Golden Ratio, and thus my desire to SHARE this discovery.
Nest we will try to project some targets for the pullback if this is for real.
The dance continues back in the zone testing the boundaries.
Zoom IN (5 min) And we see PERFECT fib bounces top and bottom of zone.
Zoom in MORE (m1) and add a fib for the last dip (in red lines) this wave has reinforced our existing fibs. our Genesis fib at 5137 backed by local 2.618, our Covid fib below at 5109 plus local 6.236.
So we now have a precisely defined range to watch today
Follow up to last image above, rejection at the 5137 genesis fib See if we test it again, this is a "high gravity" fib so we might orbit it for a while
Starting to look a little scary for bulls clearly stuck in our resistance zone still, and wobbling like tops tend to do....
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Zoom in (m30) Possible "double-Ping top" at a minor fib just above our zone. "PING" = exact ricochet from fib that you can almost HEAR.
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Zoom in MORE (m5) The main fib of this idea at 5137 clearly the center of gravity here. Looks like we are about to test it again during Asian session.
Speaking of Asia, we might have big news in a couple hours: Bank of Japan is expected to raise rates for the first time in like forever, so many traders are on the sidelines waiting for the decision in a few hours...
Zoom in (m5) and adding a fib (purple) of last drop
Zoom in more (m1) with purple fib in place and levels flipped to right side Looks like the 0.236 extension of our purple fib is reinforcing our Genesis fib at 5137.4
So 5137.4 is even MORE important now, if it is broken after being reinforced, bears will have proven to be alive still.
Zoom in (m5) and compare yesterday's test This fib might be spent as support, yesterdays bounce was clean and violent, todays bounce is anemic (dead cat ish).
Zoom in more (m1) Subsequent fib bounces are a good sign, 5153.9 the minimum bounce needed, 516x.x might buy some time for bulls.
Followup to last snap above: Danger indeed! Should have some support at 5109..5. The dashed fibs are from its Covid Stimulus wave. Likely bottom for today, see if we get much of a bounce.