S&P500 Fractal Has Ended, Possibly Signaling Recession
My weekly S&P500 fractal has clearly been broken. For those who weren't familiar with it, I discovered this fractal in the S&P 500 many months ago, and here's how it worked...
1. Support on the 200 week. (purple circles)
2. Rally above the 50 week.
3. Two major holds of support on the 50 week. (green circles)
4. Extended rally.
5. Test of the 50 week. This is a warning sign! (yellow circles)
6. Breakdown below the 50 week.
7. Support on the 200 week. (purple circles)
Looking at the chart, you can see that price has just smashed down below the 50 week moving average. If the fractal were holding, we would have seen a rally off of the 50 week. However, price has fallen decisively below the 50 week, signaling that the fractal has ended. While I do think there is an increasingly high chance that we are entering a recession at the moment, there is still a chance that the S&P could find support, particularly on the 200 week MA (in purple.) However, if price breaks down below that, it will be strong confirmation that a recession is underway, and that the historic eleven year old bull market has finally come to an end.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
1. Support on the 200 week. (purple circles)
2. Rally above the 50 week.
3. Two major holds of support on the 50 week. (green circles)
4. Extended rally.
5. Test of the 50 week. This is a warning sign! (yellow circles)
6. Breakdown below the 50 week.
7. Support on the 200 week. (purple circles)
Looking at the chart, you can see that price has just smashed down below the 50 week moving average. If the fractal were holding, we would have seen a rally off of the 50 week. However, price has fallen decisively below the 50 week, signaling that the fractal has ended. While I do think there is an increasingly high chance that we are entering a recession at the moment, there is still a chance that the S&P could find support, particularly on the 200 week MA (in purple.) However, if price breaks down below that, it will be strong confirmation that a recession is underway, and that the historic eleven year old bull market has finally come to an end.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-