Stock Market Indices Testing Important Resistance Levels
Last year’s coronavirus stock market crash turned into a BIG opportunity for active investors to buy stocks at deep discounts… especially COVID-friendly stocks.
Since the March 2020 crash low, stocks have rallied sharply for 11 months… and this rally has a couple of important stock market indices testing important resistance levels.
In today’s chart 2-pack, we examine these stock indices: the Dow Jones Industrial Average and S&P 500 Index. And we apply Fibonacci principles to long-term historical charts.
As you can see, when we use Fibonacci analysis on the 1974 and 2003/2009 lows, we get a 423.6% Fibonacci extension level at 30,500. This is a huge stretch breakout/resistance level… and it’s being tested right now!
At the same time, the S&P 500 is testing is testing a key Fibonacci level. When using the 1974 low and 2000/2007 closing high, you get a 261.8 Fibonacci extension level at 3900. And, yep, it’s being tested right now!
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I’ve never seen fib levels from such key long-term highs and lows potentially come together like this!
With the trend being up for stocks, these Fibonacci price levels become 45-year breakout tests!
If breakouts take place, look for much higher stock prices!!!
Originally Posted by Kimble Charting