S&P 500 Forms Bearish Wicks

Published 04/11/2017, 01:09 PM
Updated 07/09/2023, 06:31 AM
US500
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SPY
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Below looks at the SPY over the past couple of years on a weekly closing basis. The S&P 500 hit a key level around 6 weeks ago and continues to “back off.”

Weekly SPDR S&P 500

The Power of the Pattern applied Fibonacci to the 2016 “weekly closing highs and lows” at each point (1), then applied the 161% extension level to them.

SPY hit the 161% extension level around 6 weeks ago, at the 238 level and has proceeded to create a series of lower highs while breaking a steep rising support line at (2). This line was created off the lows at the time of the election.

Since hitting this key resistance level, the S&P 500 has created a series of bearish reversal patterns/bearish wicks in three out of the last 6 weeks.

Until the S&P can take out the 161% level, it comes into play as the 800 pound resistance zone.

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