On Monday 3rd October 2022, the Fibonacci support at 3542 was tested briefly. The Friday close of 3637 was almost 100 points adrift of this support level. After a lower unemployment rate was reported on Friday, it lessened the prospect of a lower Fed Funds rate hike in the near future. An increase of 75 basis points again is a strong possibility. This triggered...
On Friday, 23 June the lower resistance level of 3645 was tested resulting in a bounce near the close. This was around the level of the June 17 2022.
If the resistance is breached again next week, the S&P500 could see a drop to the Fibonacci resistance line of 3548.
As mentioned yesterday the 3923 level provided some resistance. There are 3 scenarios to play out now:
* A flirtation around this level for a few days providing some short term volatility
* A move upward to test the 4030 level
* Another go at the 3923 level with a breakout to the down side
I think at this level the 75% basis point future rate hike expectation by...
You cannot trade on technicals alone. One has to watch the triggers and wait for them to conclude. This was a case in point on Friday 26th August 2022, after the Jackson Hole speech by Fed Chair Jay Powell. Bulls drove the market up just prior to the speech thinking that released economic data was good for a continuation of the bear market rally. Then Chair Powell...
The S&P500 is riding the Fibonacci wave, at present around 3810. The index may go flat for the next few days as earnings data appears to be thin, flirting with the 3810 level. However, any negative triggers could see it riding all the way down to 3550.
Hang ten everyone!
Is this a turning point for the S&P 500? Following the rate hike and the breach in the Fibonacci level 3810 there appears to be a resistance at the 3720 level. The next Fib level is about 3500. Downward pressure due to margin reduction, earnings, unemployment and high fuel prices are pointing to an approach to this level, at least by the year end. The fears of...
