Several major U.S. stock market indices have bounced over the past two months. But these moves higher are facing major tests right now.
And considering that we are in a bear market, these are just bounces until more constructive rallies occur with major resistance levels breaking along the way.
Today, we share a four-pack chart highlighting critical Fibonacci resistance levels on major U.S. stock market indices.
These indices include the Invesco QQQ Trust (NASDAQ:QQQ), NYSE Composite, Russell 2000, and Wilshire 4500. Each tested the 50% Fibonacci retracement level at (1) and reversed lower. Yikes!
These reversals also took place at each index’s falling 39-week moving average. Let’s just call this a “slow down, construction zone.” Should these resistance levels hold firm, it could mean a pullback or another leg lower. Careful here.
Several important tests are in play for the U.S. stock market simultaneously. Stay tuned!